American Land Title Association (ALTA) Practice Exam

In the context of title insurance and easements, when there is ambiguity regarding the status of an easement, it is crucial to ensure that all relevant parties are informed. Including a note confirming that the insurer has been advised serves as an important clarification in the title report. This note communicates that the insurer is aware of the potential issues or uncertainties surrounding the easement's legal standing and has taken them into consideration when evaluating the title.

This documentation can be beneficial for both the buyer and the lender, as it helps to mitigate risks associated with unclear easement rights. By confirming that the insurer is aware of the ambiguity, it assures the parties involved that they have accurate and current information, which is essential for making informed decisions regarding the property.

Including notes about illegibility, location, or suggesting that an easement be ignored does not address the core issue of ambiguity in status and may create further confusion or leave parties uninformed about a key aspect of the property title. Therefore, confirming that the insurer is properly informed is the most appropriate and effective action in this situation.