Virtual Underwriter

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Underwriting Manual: TX

19.16

Tenancy Rights Of Parties In Possession

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Underwriting Manual Subtopic
19.16.1

In General

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Any purchaser or mortgagee of real property is automatically charged with notice of the rights claimed by those parties in possession of any part of the property, even though no notice of such rights appears in the land recorder.

Because of this situation, and regardless whether the General Exception relative to “rights of parties in possession” is shown or deleted, it is necessary to consider the necessity to specifically except the “tenancy rights” of any party in possession other than those of a lessee in possession under the terms of a lease.

Said tenancy rights may arise as a possible consequence of any of the following:

·  Multi-dwelling structures.

·  Expired leases, recorded or unrecorded.

·  Company’s actual knowledge of parties, other than the record owners, occupying the property.

·  Surveys or physical inspections of the property.

·  Notice of unrecorded leases given by recorded instruments.

·  Tenancies-at-will.

Underwriting Manual Subtopic
19.16.2

Effects of the Showing of the â??Parties in Possessionâ??

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Knowledge by the Company, obtained from the public records of the existence of a party in possession of any part of the property, makes it necessary to make a special Schedule B exception of any such rights.