Unmarketable Title Rejection
Vincent Vale contracted to buy land from Vera Vu. A recorded lien remained unreleased at closing. Vincent refused to close because the title failed the marketability standard that a prudent purchaser would accept.
Also known as: vendees · venditae · buyer · purchaser
Written by attorneys · grounded in primary & secondary sources — see below
A purchaser of property, especially real property, who acquires title or an equitable interest under a contract of sale from a vendor.
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Vincent Vale contracted to buy land from Vera Vu. A recorded lien remained unreleased at closing. Vincent refused to close because the title failed the marketability standard that a prudent purchaser would accept.
Virgil Vaughn purchased land from Viktor Voronin. An easement appeared only in a deed to a stranger outside the chain. Virgil took without constructive notice of the easement under the recording rules.
Vanessa Vega obtained possession of equipment from Vanessa Vinson by misrepresenting payment terms. Vanessa Vinson later recovered the chattel in conversion because the consent obtained by fraud was ineffective against a non-bona-fide purchaser.
Vasquez Imports issued its own shares to Velocity Logistics for stated consideration. Velocity paid the authorized amount and faced no further liability to the corporation or its creditors for the shares.
Valdez Steel obtained a charging order against a partner's transferable interest. When distributions failed to satisfy the debt, the court ordered foreclosure sale. Vivid Media purchased only the transferable interest and acquired no partner status.
Vincent Vale agreed to purchase land from Vera Vu. An unreleased mortgage clouded title and the seller could not cure by closing. Vincent rescinded the contract and recovered his deposit under the marketable title standard.
The vendee may refuse to close and may rescind the contract or recover damages when the seller cannot cure the defect by closing. Title defects such as unreleased liens or breaks in the chain render title unmarketable.
A vendee receives constructive notice only of instruments appearing in the chain through which the vendee claims. An interest recorded outside that chain does not bind the vendee.
Consent obtained by fraud does not prevent recovery for trespass or conversion against anyone other than a bona fide purchaser of the chattel.
…securities which have been attached. If its procedure were upheld, Delaware would, in effect, impose a duty of inquiry on every purchaser of securities in the national market. For unless the purchaser ascertains both the State of incorporation of the company whose shares he is buying, and also the idiosyncrasies of its law,…