Question on Objection to title policy and survey (section 6D)

[Peter Yeh]

Hello BPers, 

I'm currently in the process of buying a house in the Houston area and need some help on understanding the Objection section of the contract (section 6D). Appreciate if you can share your knowledge and experience. 

Background: I received a survey that was accepted by the title company when signing the purchase contract. The title commitment was sent to me yesterday and, upon a closer examination, I noticed that the U.E. (utility easement) is very close to the house (~1ft). I still like the house but it's a bit annoying now knowing that I cannot comfortably put in e.g. a patio in my backyard if I'd like to do so in the future. 

So my questions are:

1. Can I make objections based on this finding? Section 6D in my contract states that 

Buyer may object in writing to defects, exceptions, or encumbrances to title: disclosed on the survey other than items 6A(1) through (7) above; disclosed in the Commitment other than items 6A(1) through (9) above; or which prohibit the following use or activity: Residential

Since U.E. is stated in 6A(4) (Utility easements created by the dedication deed or plat of the subdivision in which the
Property is located.), does this mean that I don't have a case for Objection?

2. What are the possible outcomes of this objection? Since this issue cannot be cured, there's no point of a Cure Period. So the results can only be either we terminate the contract or I accept the property as is. Do I understand correctly?

Thanks in advance for your input. 

[Mark Brown]

Also as a side note, presumably your realtor filled in "residential" in the contract where you said it reads "or which prohibit the following use or activity: Residential"  You can actually expend on that one word next time. For example, put down anything you want to do that would expand upon the footprint of the house. Ex: "Residential with new back patio and outdoor kitchen" or "Residential with new room addition". Then if easements or something throws you a curveball, you have much stronger grounds to create an objection they can't cure and get out of the contract.