Also known as: superior titles · paramount title
Written by attorneys · grounded in primary & secondary sources — see below
A claim to ownership or possession of property that takes precedence over a competing claim because it arose earlier in time, was recorded first, or otherwise satisfies priority rules under applicable law.
Santiago Sanchez leased a warehouse to Sophia Singh for a one-year term that ended on June 30. After the term expired Sophia remained in possession but made no claim that she owned the building or held any interest superior to Santiago's. Because Sophia continued possession without asserting superior title her interest became an estate at sufferance.
Sebastian Santos signed a recorded contract for deed conveying a mixed-use building to Serena Soto three years before he later leased the fifteenth floor to Summit Bank. When the bank took possession Serena asserted her earlier equitable interest. Serena's recorded equitable ownership constituted a paramount title superior to the bank's lease.
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Solomon Silver granted Global Marine a forty-year concession over all port berths three years before leasing one dock to Harbor Shipping. On the date Harbor was entitled to possession Global asserted its concession. Global's prior nonterminable concession was a paramount title that breached the landlord's obligation and entitled Harbor to terminate the lease.
Sierra Solutions leased an entire office building to Southland Foods. A recorded easement held by a utility company affected only the loading dock area. Southland Foods affirmed the lease as to the unaffected floors and obtained an abatement of rent proportional to the portion subject to the paramount title.
Sapphire Technologies leased beachfront land to Sean Steele for twenty years. After Sean took possession a prior recorded concession holder evicted him from half the parcel. Sean could terminate the lease or continue it with damages and rent abatement for the portion from which he was evicted.
Owner conveyed Blackacre by recorded deed to Alice in 2018. Owner later leased the same parcel to Bob in 2020. When Bob took possession Alice asserted her earlier deed. Alice's recorded deed constituted superior title that prevailed over Bob's lease.
A buyer under a specifically enforceable contract for deed holds an equitable ownership interest from the time of the contract. When that interest is created before the lease and is not terminable at the landlord's will, it is paramount to both the landlord's reversion and the later lease unless a recording statute protects the tenant.
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The tenant may terminate the lease and recover damages. If the paramount title affects only part of the property the tenant may affirm the lease as to the unaffected portion and obtain damages plus an abatement of rent.
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No breach occurs merely from the existence of the paramount title. A breach arises only if the holder of the paramount title actually evicts the tenant and the eviction deprives the tenant of the use contemplated by the parties.
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A person who had a possessory interest under an effective conveyance and remains after termination without claiming any interest better than the grantor's holds an estate at sufferance rather than asserting superior title.
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…“the facts establishing the superiority of [its] claim,” Mich. Ct. Rule 3.411(B)(2)(c) (West 2005), and Grable has premised its superior title claim on a failure by the IRS to give it adequate notice, as defined by federal law. Whether Grable was given notice within the meaning of the federal statute is thus an essential element…