Marketable Title Flashcards
What is Marketable title?
A title not subject to reasonable doubt as would create a just apprehension of validity in the mind of a reasonable, prudent, and intelligent person.
Title which a reasonable person, guided by competent legal advice, would e willing to take and and for which they would be willing to pay full market value for.
What does Marketable Title require?
Seller must have an FSA, title must be free from encumbrances, and the buyer must be entitled to full possession of it through purchase.
When a buyer contracts to buy ____, they do not contract to buy ____.
When a buyer contracts to buy land, they do not contract to buy a lawsuit.
What is a Restrictive Covenant?
A private agreement between private parties agreeing to certain conditions about the use of the land. This can also be called a private servitude.
What can a restrictive covenant limit?
Size, shape, number of stories, the race of the members of the household (often found unenforceable by courts), etc.
What is the majority rule for Restrictive Covenants?
The mere existence, without notice, of such covenants make the title unmarketable just because they are in existence. Even if they are not enforced.
Violations of Building Codes/ Zoning ordinances effects on the title
Zoning and Building ordinances do not create an encumbrance generally, unless there is an existing patent defect.
