Does an examination of the abstract
reveal all defects in the title?
It may not ... simply because the public
records, from which an abstract is made, may not show everything that
affects the title. For example: Statements in the record may
be incorrect or may fail to give important facts. There may be
fraudulent or improperly executed documents on the record. And,
there may even be ordinary clerical mistakes which could seriously
endanger the title.
In fact, a title would appear to be
clear, after the examination of the abstract, only:
- If the search made in preparing the
abstract has been thorough;
- If the facts revealed in the abstract
have been correctly interpreted;
- If no clerical errors have been made
in public records;
- If claims or rights of others have
been disposed of.
Even after all these possible hazards are
eliminated, there still remain some of the most serious sources of risk
... hazards which by their very nature cannot be uncovered.
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