In order to insure a transaction involving property without exception to a boundary line dispute, all parties with an interest in the disputed property must enter into a boundary line agreement which establishes the location of the dividing line between the properties. Each and every interested party must then quitclaim to each other the respective area within their boundaries; otherwise an exception for coverage must appear in Schedule B-I of the title policy conforming to the following:
“Rights and claims of parties along the ____ boundary of the insured property, the exact location of which is in dispute, and to which the Company does not insure the location of a title to property adjacent to said line.”
As mentioned above, existing lenders and/or lienholders must also ratify the transaction.