Elena is purchasing abstract property in Washington County, Minnesota. Before closing, her lender requires a title search. The title examiner discovers a gap in the chain of title from 1978 to 1982, during which no deed was recorded. The seller cannot locate any documents explaining the gap. Under Minnesota law, which of the following best describes the implication of this title defect for the transaction?
Correct Answer
B) The gap creates a cloud on title, and the buyer may require the seller to cure the defect, obtain title insurance, or file a quiet title action before closing
A gap in the chain of title creates a cloud on title, meaning there is uncertainty about who held ownership during the missing period and whether any claims arose during that time. Under Minnesota's abstract system, the buyer is entitled to marketable title — title that is free from reasonable doubt and encumbrances. The seller must cure the defect (e.g., by locating missing deeds, obtaining a quitclaim deed from heirs, or filing a quiet title action) or the parties may agree to resolve it through title insurance. The buyer is not obligated to accept title with a known cloud.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
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