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.
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.
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.