Escrow & Title

At a Mississippi closing, the title commitment shows an exception for 'rights of parties in possession.' This exception protects against claims from:

AFormer owners of the property
BPersons who are actually occupying the property (tenants, adverse possessors) but whose interests do not appear in the public records✓ Correct
COnly current mortgage holders
DAdjacent property owners

Explanation

The 'rights of parties in possession' exception protects the title insurer from claims arising from people who are physically occupying or using the property but whose interests (tenant leases, unrecorded easements, adverse possession claims) may not appear in the public records. A physical inspection of the property can reveal such interests.

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