Underwriting Manual: Tenancy Rights Of Parties In Possession

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Underwriting Manual Subtopic
19.16.1

In General

12/13/2005
V 4

Any purchaser or mortgagee of real property is automatically charged with notice of the rights claimed by those parties in possession of any part of the property, even though no notice of such rights appears in the land records.

Because of these rights, and regardless of whether the general exception relative to rights or claims of parties in possession not shown by the public records (No. 3 of Commitment and No. 1 of Owner's, both ALTA) is shown or deleted, it may be necessary to specifically except to the "tenancy rights" of any party in possession other than those of a lessee in possession under the terms of a lease.

These tenancy rights may arise because of:

  • Multi-dwelling structures
  • Expired leases, recorded or unrecorded
  • The company's actual knowledge that parties, other than the record owners, occupy the property
  • Surveys or physical inspections of the property
  • Notice of unrecorded leases given by recorded instruments
  • Tenancies-at-will

Underwriting Manual Subtopic
19.16.2

Effects Of The "Parties In Possession" General Exception

12/13/2005
V 4

If the Company, learns from the public records that a party is in possession of any part of the property, it must make a special Schedule B exception of any such rights.