Property Ownership
Under NC's Marketable Title Act, a person who has held an unbroken chain of title for 30 years or more has a marketable title that is:
ASubject to all defects ever recorded
BFree from most pre-existing claims that have not been re-recorded within the 30-year period✓ Correct
CAlways insurable without exception
DAutomatically transferred to the state after 30 years
Explanation
NC's Marketable Title Act provides that a continuous chain of title for 30+ years creates marketable title free from most pre-existing claims unless specifically preserved by re-recording within the period.
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Key Terms to Know
Chain of Title
The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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