Texas Surveyors Practice Exam

What type of land issues are generally not covered by title insurance?

1. Ownership disputes

2. Zoning regulations

3. Boundary disputes

4. Tax liens

The correct answer is: Zoning regulations

Title insurance is designed to protect property buyers and lenders from financial loss due to defects in a title to real property. However, certain land issues are not typically covered by title insurance, which includes zoning regulations. Zoning regulations establish how a property may be used, such as residential, commercial, or industrial purposes, and govern aspects like building height, density, and land use. These regulations can change over time and are often imposed by local government entities. Since zoning laws are a matter of municipal authority and public regulation rather than issues related to the ownership or rights of the title itself, they fall outside the purview of title insurance. This protection does not extend to potential penalties, restrictions, or changes associated with zoning because these are not defects in the property title but rather regulations that might affect how the property is utilized. Therefore, zoning issues are specifically excluded from coverage, while other issues like ownership disputes, boundary disputes, and tax liens are generally addressed through title insurance provisions.