Marketable Title Mayhem – July, 2020

Welcome to the 8th edition of MTM. Your comments and feedback are always welcome!

Business remains a bit frenetic and several town clerks still refuse to unlock their doors. That said, it’s busy out there. As you package documents up for recording, please take extra care to check for execution AND to make sure that all documents are included for recording. We’re seeing some execution errors (often involving use of a POA) and we’re seeing instances of failure to include POA with the recording.  An extra 60 seconds of review now could save 30 minutes of uncompensated time later.

In the meantime, as with last month’s quiz, we hope that MTM affords you a few quiet minutes away from the stresses of dealing with all that is swirling around out there.

From the VATC team to you, please know that we appreciate all that you continually do to serve the needs of your clients. Your ability to navigate challenges is inspiring. We salute your hard work. Be safe, be well and good luck on this month’s quiz.

Rules

• There are no rules. You may use research, statutes, cases, Title Standards, etc.
• Firm/Team entries are welcome – just give it a name!
• Submit your answers from the web form on this page.
• We will post the answers in the Honor Roll with the next blog.
• Feel free to share this with friends and colleagues

The survey exception does not automatically appear in which type of policy:

1. The survey exception does not automatically appear in which type of policy:
   1. Standard Loan
   2. Standard Owner
   3. Expanded Owner
   4. Expanded Loan
2. Liens, such as tax liens and judgment liens, which are recorded against a person who does not own an interest in real estate at the time of recording of such lien attach by operation of law to any interest acquired subsequent to the recording of the lien. Such liens are colloquially known as:
   1. Constructive liens
   2. Springing liens (See comment 5 to Title Standard 2.2, The Concept of the Chain of Title…)
   3. After-acquired title liens
   4. Trick question, such liens do not attach under Vermont law

3. In terms of priority of recorded conveyances, Vermont is:
   1. Purely a notice state (See Title Standard 2.5, Priority of Conveyances)
   2. A race-notice state
   3. A notice-race state
   4. Purely a race state

4. Fred Flintstone grants a deed to Barney Rubble with no restrictions. A day later Fred remembers that the contract terms provided that the deed would be conveyed with a restrictive covenant against future subdivision. Which of the following should occur?
   1. Based on contract terms, Fred can record a corrective deed to Barney which adds the covenant
   2. Fred should sue Barney for breach of contract
   3. Barney should convey back to Fred and accept a new deed from Fred which includes the restrictive covenant (See Title Standard 4.1, Limitations on the Use By Grantor of Corrective Deeds)
   4. Fred should grant a straw deed to Barney

5. An ALTA Residential, Current Assessments (Expanded Protection) loan policy incorporates which of the following ALTA Endorsements by reference:
   1. Condominium, Environmental & Restrictions, Encroachments and Minerals
   2. PUD, Zoning & Non-Imputation
   3. Condominium, Variable Rate & Survey 
   4. Variable Rate, Tie-In & Leasehold