Last Chapter Property

1. Says to purchaser, we have done a title search and if we have made a mistake we will pay you damages
2. Title Insurance Company will spend own resources to defend title it says you have

defend claim with exemptions
exceptions: utility easement. morden boundary disputes

Marketable title act: root title
title that is the most recent title transfer before a particular period of time
30 years back
Title prior to 30 years is the root title
Any outstanding titles outside of root title are extinguished

includes all documents and text references to chain of title but does not include references to OTHER chains of title
(only applies to documents in reference to that party's chain of title

includes facts that would cause a reasonable person to believe that there are interests inconsistent with what purchaser thinks he/she is purchasing

1. Bona fide purchaser for value
purchaser gave something of value in exchange for title and
purchaser had no notice of 1's interest

1. Seisin (present covenant): grantor’s promise that he is seized of the title that the deed purports to convey (example: promise to give fee simple but gives life estate= violates seisin)
2. Power to convey (present covenant): means same as seisin
3. Against encumbrances (present covenant)
4. Quiet Enjoyment (future covenant)
5. Warranty (future covenant)
6. Further assurances (future covenant): I promise to do whatever to get you that title Remedy: 1-5 is damages
Remedy: 6 injunctive relief (make grantor sign the release)

no promises by grantor regarding quality of title (no covenants) (good title clearing mechanism)

buyer will review chain of seller's title to ascertain quality if sellers title
2 methods
Trace index search: method of searching by parcel
Grantor and grantee index search:
look at all the past grantees
after 40 years or so look at grantor searching forward to make sure all the interest that you saw for the grantor index make sure the match with all the grantee index

unrecorded instrument is invalid against a subsequent purchaser w/o notice
(at time 2nd buyer purchased)

each document not recorded
Prioritize subsequent purchaser interest if 2 things occur
(1) subsequent purchaser records first (first recorded)
(2) subsequent purchaser takes title without notice (without notice)
Notice= constructive or inquiry notice

who records first

a. recording act: change the CL system rules
Analysis for 2 to trump 1:
a. 1 (first buyer) must fail to record and
b. 2 (second buyer) has to meet statute’s requirement

.Grantor who conveys lesser interest than deed purports to convey and who later acquires part or all of the purported interest, by operation of the law, passes the later- acquired interest to the grantee
(whenever grantor acquires interest automatically goes to grantee)

priorities: first in time first in right (title)