1.24 Adverse Interests

1.24.1

In General

The examination of the title of a certain piece of land may produce information in regard to parties who are outside the regular chain of title or without any apparent legal basis are claiming either title to the land or an interest therein.

Such information may also be the result of:

  • A physical inspection of the property.

  • A report of possession.

  • A stranger to the title making payments in regard to taxes, mortgages, maintenance, etc.

  • Information received by the Company through other means.

The procedures to be used when attempting to eliminate an adverse interest are:

  • To obtain additional information.

  • To require a quit-claim deed from the party holding the adverse interest.

  • To require a quiet title action.

  • To rely on the statute of limitation.

If elimination of the adverse interest by any of these methods is not possible, the title commitment and title policy must contain an appropriate exception.