Escrow & Title
A Minnesota property has an abstract of title going back to 1890. The current owner wants to sell, and the buyer's attorney finds a break in the chain of title in 1947. This break is:
AAutomatically cured after 70 years under Minnesota law
BA title defect that must be cured before the sale can close with clear title✓ Correct
COnly relevant if someone actively claims ownership based on the break
DNot significant since modern title insurance covers all prior defects
Explanation
A break in the chain of title is a serious defect that casts doubt on the current owner's ability to convey good title. In Minnesota, title defects must be cured through various means: corrective deeds, affidavits, quiet title actions, or other legal remedies.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
State-Specific Concepts
DRE Regulation
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