ADVERSE INTERESTS [IDENTIFY SOURCE OF INFORMATION], AND OF ALL PERSONS CLAIMING THEREUNDER.
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1 ADVERSE INTERESTS ADVERSE INTERESTS DISCLOSED BY SEARCH This exception should be raised where information is encountered in the course of an examination of title which discloses a stranger to the title is claiming an interest in or lien on the land. This could be disclosed by recorded affidavit, tax assessment information, the application for title insurance, deeds, mortgages or other sources. INTEREST OF DISCLOSED BY, IF ANY, AS [IDENTIFY SOURCE OF INFORMATION], AND OF ALL PERSONS CLAIMING THEREUNDER. In addition to inquiring as to the nature of the interest by means of the exception, it is necessary, of course, to raise the instrument which disclosed the interest as an exception to title. Generally, no name search is made against the parties if it appears that the interest is simply a mistake in the description of the land. The necessity of making a name search against the adverse claimant is dependent upon the nature of the interest being asserted. If it appears that ownership of some estate in the land is being claimed, then a name search should be made against the claimant, and disclosed matters raised as exceptions. ADVERSE INTERESTS DEED OUTSIDE CHAIN OF TITLE This exception should be raised on the office opinion where a deed conveying the land is encountered in the chain of title that names as grantor a stranger to the title, and no further conveyance appears of record from the grantee. HAVING NO APPARENT INTEREST OF RECORD CONVEYED THE LAND TO BY DEED DATED AND RECORDED AS DOCUMENT NO.. RELATIVE THERETO THE FOLLOWING IS NOTED: (a) THE FORMER INTEREST OF (GRANTOR) IN THE LAND SHOULD BE FULLY DISCLOSED, AND THIS COMMITMENT IS SUBJECT TO SUCH FURTHER EXCEPTIONS, IF ANY, AS MAY THEN BE 1 Adverse Interest
2 DEEMED NECESSARY; (b) INTEREST OF (GRANTEE) UNDER AND BY VIRTUE OF THE DEED AND OF ALL PERSONS CLAIMING THEREUNDER. In the event the named grantee has in turn conveyed the property, it will be necessary to revise the wording of the exception to reflect these changed facts. Example: HAVING NO APPARENT INTEREST OF RECORD CONVEYED THE LAND TO BY DEED DATED AND RECORDED AS DOCUMENT NO.. RELATIVE THERETO THE FOLLOWING IS NOTED: (a) THE FORMER INTEREST OF (GRANTOR) IN THE LAND SHOULD BE FULLY DISCLOSED, AND THIS COMMITMENT IS SUBJECT TO SUCH FURTHER EXCEPTIONS, IF ANY, AS MAY THEN BE DEEMED NECESSARY; (b) INTEREST OF ACQUIRED BY MESNE CONVEYANCES ORIGINATING IN A DEED RECORDED AS DOCUMENT AND OF ALL PERSONS CLAIMING THEREUNDER. A name search should be made against the original grantor and all subsequent parties in the last 20 years in the adverse chain of title, and the same exceptions, if any, should be raised on the opinion that would have been shown were this chain of title the only one of record. There is no typical clearance of adverse interest exceptions. First, information must be obtained and a determination made of whether the interest claimed is the result of a simple error, or if a real interest is being claimed. Errors can be cleared by corrective instruments or affidavits. A true claim of interest is typically handled by obtaining a conveyance from the adverse interest holder. Some situations require litigation in the form of a quiet title suit. USE OF AFFIDAVIT OF ADVERSE POSSESSION The use of an affidavit of adverse possession should not be overly relied upon. But in those instances where an affidavit is taken certain guidelines should be followed. Remember that adverse possession is not established by the affidavit. Only a court can establish title by means of adverse possession. The purpose of the affidavit is to preserve evidence of the facts upon which a claim of adverse possession can be made. 2 Adverse Interest
3 The affiant should be from persons who do not have a financial interest in the transactions being insured. The affidavit should state facts. Statements of legal conclusions that the possession is adverse are meaningless. The more affiants the better. The affidavit should be recorded so that a certified copy can be obtained for use as evidence if the original is lost or destroyed. Every affidavit of adverse possession will be different because the facts are different. A form of affidavit appears below for reference. 3 Adverse Interest
4 STATE OF ) COUNTY OF ) SS. AFFIDAVIT OF ADVERSE POSSESSION The undersigned, being first duly sworn, each for himself on oath deposes and says that he is of legal age, under no legal disability, and resides in the County of in the State of. Each affiant further states that he has been familiar with the use, possessions, and occupancy of the land hereinafter described for the number of years set out opposite his name below: Each affiant further states that he has during all of such time set out opposite his name above, been well and personally acquainted with the following described real estate situated in the County of in the State of to wit: Each affiant further states that he has been well and personally acquainted with the persons who have claimed ownership of the described land, and have lived upon and/or occupied the land and that said land is currently owned and occupied by. Each affiant further states that he knows of his own knowledge that acquired title to the above described real estate some time prior to, and knows of his own knowledge that entered into possession of the above described real estate at said time and thereafter continued in the exclusive, complete, open, notorious, adverse, hostile, undisputed, continuous, visible, distinct and uninterrupted possession of said real estate claiming fee title thereto, and continues in said possession to this day. 4 Adverse Interest
5 Each affiant further states that has exercised full control of said real estate and has cared for the land in a manner consistent with its use and location. [ADD FACTS DEMONSTRATING USE AND CONTROL SUCH AS: MOWING; LANDSCAPING; FENCING; LIMITING ACCESS; ADDING IMPROVEMENTS; POSTING SIGNS; GRANTING OF EASEMENTS; LEASING; MORTGAGING; ETC.] Each affiant further states that he knows of his own knowledge that no person or persons other than has ever claimed title to the above-described real estate. No other persons have exercised any possessory rights, control over, or use of, the real estate other than persons claiming said rights through. Affiants further state the purpose of making this affidavit is to help clarify title to the real estate described. Subscribed and sworn to before me this day of, 20. Notary Public 5 Adverse Interest
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