Escrow & Title
A Mississippi title company discovers a 'gap' in the chain of title from 1965–1968 when records were lost in a courthouse fire. This gap creates a cloud on title. The buyer's options include:
AProceeding with purchase since old gaps are unenforceable
BRequiring the seller to obtain title insurance, file a quiet title action, or locate alternative evidence to bridge the gap✓ Correct
CAutomatically receiving a price reduction
DIgnoring the gap since it is more than 10 years old
Explanation
A gap in the chain of title creates a cloud that must be addressed. Options include obtaining an owner's title insurance policy that covers the gap, filing a quiet title action to judicially establish title, or locating alternative documentation (affidavits, possession evidence) to fill the gap. The buyer should not accept uncured title defects.
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