Which of the following is a standard exception in title insurance?

The correct answer reflects a standard exception in title insurance because government regulations, such as zoning laws or building codes, can impose restrictions on the use of the property that may not be disclosed during the title examination. This means that title insurance policies often contain exclusions for such regulations to protect the insurer from liabilities related to these laws.

When a property is insured, the intent is to protect the owner and the lender from losses due to defects in title. However, certain conditions inherent in governmental authority are inherent risks that title insurance does not cover. Therefore, government regulations are explicitly noted as exceptions in the policy to clarify that any issues arising from these regulations would not be covered.

In contrast to government regulations, the other options, while relevant to title issues, do not typically qualify as standard exceptions in title insurance. Undocumented owners may pose issues but are not universally recognized as exceptions. Covenants may create obligations or restrictions but often won't negate title. Public rights of way are more about established access and usually do not prevent the issuance of clear title but rather indicate public rights that are acknowledged in existing ownership.