The title examination may reveal parties challenging the title to the subject property, although these claimants are outside the regular chain of title and are without apparent legal basis to assert title or any valid interest in the subject property.
Other avenues of discovery of adverse interests include:
- Physical inspection of the property
- A report of possession.
- A stranger to the title making payments of taxes, mortgages, maintenance, etc.
- Information received by the Company through various other channels.
The procedures to be used when attempting to eliminate an adverse interest are:
Upon discovery of information concerning an adverse interest, the title agent will apply appropriate procedures including:
- Obtain or request additional information to verify the adverse interest.
- Determine whether it is possible to rely on the statute of limitation to eliminate the adverse interest.
- Require a quit-claim deed from the party holding the adverse interest.
- Require a quiet title action.
If the title agent is unable to eliminate the adverse interest the title commitment or title policy must contain an appropriate exception.