ADI

Adverse Interests

Various matters may disclose adverse interests. They include inspections, surveys, multiple chains of title, instruments executed by strangers to the title, recitals in recorded instruments, and taxes paid by strangers. These adverse interests must be explained, satisfied by deed, resolved by judicial proceedings, or excepted to in the policy.

Requirement

ADIR01 STG

Adverse Claim Disclosed

Any right, claim, title, or interest of _______________________ or those claiming by, through, or under said person as disclosed by ___________________________. The Company requires a satisfactory deed from said person and the spouse, if any, of said person. The Company may then make additional requirements or exceptions.
Comment: Use this requirement if an instrument or inspection discloses a possible adverse interest.

See Underwriting Manual

ADIR02 STG

Proposed Seller or Borrower Does Not Have Title

The Company is informed that the land is now claimed by _________. The Company requires satisfactory evidence as to the manner in which the vesting of title occurred. The Company may then make additional requirements or exceptions.
Comment: Use this requirement if the proposed seller or borrower does not have title. The vesting of title should be consistent with the examination.

See Underwriting Manual

ADIR03 STG

Grantee Lacks Legal Capacity to Hold Title

Any right, title, or interest of ______________, the grantee in the deed recorded _____________________. The public records do not disclose that the grantee is an entity capable of acquiring title to real property. The Company requires for its review satisfactory evidence that the grantee is an entity capable of holding title. The Company may then make additional requirements or exceptions.
Comment: Use this requirement if the grantee in a deed appears to be an unincorporated association incapable of holding title except through trustees. This is a common conveyancing problem for churches.

Exception

ADIX01 ALTA

Adverse Interest Not Disclosed by Instrument

Any right, title, or interest of ________________ or those claiming by, through, or under that person as disclosed by ______________.
Comment: Use this exception if an inspection, tax payment, or similar matter discloses a possible adverse interest.

See Underwriting Manual

ADIX02 ALTA

Adverse Interest Disclosed by Instrument

Any right, title, or interest of ____________ or those claiming by, through, or under that person as disclosed by instrument recorded __________.
Comment: Use this exception if an instrument, such as a deed, affidavit, or other instrument executed by a stranger to title (e.g., easement, lease, or mortgage), discloses a possible adverse interest.

See Underwriting Manual