BoatWiki - Definitions
A closing exception can be defined as a written authorization from a buyer, lender, or seller allowing the closing to proceed regardless of certain deficiencies. This will hold harmless the closing agent from any responsibility whatsoever for any subsequent damages resulting from said action.
In an effort to avoid a contractual default, the parties involved may be willing to take their chances when it comes to due diligence. Although typically related to title or lien deficiencies, this can also involve such things as funds clearance or insufficient paperwork. This is where a closing exception comes into play in order to remain within the confines of an agreement.
There are numerous issues that may create roadblocks to the finalization of a boat purchase and sale arrangement. These can involve such things as delays in title searches, financing, delivery issues, and other unexpected problems.
Careful consideration should be given to using closing exceptions as they may leave the grantor with no recourse if the respective deficiencies can not be corrected.
Credits and References
3/1/2022 - Page initiated by Team BoatWiki.