What is the standard exception noted in a title commitment for defects, liens, and encumbrances occurring after the effective date but before the proposed insured acquires the estate?

The standard exception noted in a title commitment for defects, liens, and encumbrances that occur after the effective date but before the proposed insured acquires the estate is known as the gap exception. This exception is crucial as it acknowledges the timeframe between the effective date of the title commitment and the actual date of closing. During this interval, any new claims or issues can arise that could affect the property's title, and the gap exception effectively ensures that the title insurance does not cover these new risks.

Understanding this concept is key for those involved in real estate transactions, as it highlights the vulnerability of a property title during the closing process. It serves as a reminder for buyers and their agents to be vigilant and conduct thorough due diligence during this critical time frame to safeguard their interests.