Legal Definitions - exception in deed

Definition: Exception in deed is a legal term used in real estate transactions that refers to a reservation of a property interest in the deed for the transferor. This means that the person selling the property is keeping some part of it for themselves, such as an easement or a life estate.

Example: Let's say that a property owner wants to sell a piece of land to their neighbor, but they also want to keep the right to use the driveway on that land to access the highway. In this case, the property owner would include an exception in the deed that reserves the easement for themselves.

Another example: A homeowner sells their house to a new owner, but they want to keep the right to use the backyard shed for storage. They would include an exception in the deed that reserves the right to use the shed.

These examples illustrate how an exception in deed allows the seller to keep some part of the property for themselves, even after selling it to someone else.