Unless a title examiner has actual notice that the tenant remains in possession or there is an option to purchase, a recorded lease or memorandum of lease setting forth a lease term, including any renewals or extensions thereof that has expired as of the date of title examination no longer encumbers the property.
Comment 1. Upon the expiration of a lease, including any extensions or renewals thereof, a tenant has no remaining contractual right to occupy the property; in the absence of an agreement to the contrary, a holdover tenant’s only possible remaining interest under such circumstances is as a tenant at sufferance.
Comment 2. It is important to recognize the difference between an expired lease and one that has been terminated. Although in both instances the tenant retains no further interest in the property, the requirements for passing title over a terminated lease are different from those set forth in this Standard. Terminated leases are discussed in Standard 32.3.
September 2022: Standard and comments added.