An attorney drafting a real estate sales contract should include a provision that any and all questions of marketability are to be determined in accordance with the Title Standards of the Vermont Bar Association then in force and that the effect of the existence of any encumbrances and title defects shall be determined in accordance with such standards.
Comment 1. The following language or its equivalent is recommended for inclusion in all real estate contracts:
It is understood and agreed that the title herein required to be furnished by the seller shall be marketable and the marketability thereof shall be determined in accordance with the Vermont Marketable Title Act (27 V.S.A. § 601 et seq.) and Standards of Title of the Vermont Bar Association now in force to the extent applicable standards exist. It is also agreed that any and all defects in or encumbrances against the title which come within the scope of said Title Standards shall not constitute a valid objection on the part of the buyer, if such Standards do not so provide; provided, the seller furnishes any affidavits or other instruments which may be required by the applicable Standards.
Comment 2. This Standard is to be liberally construed and applied. All objections to title should be considered in the light of these standards to the extent there is a relevant standard in force at the time.
History
March 29, 2000 – Technical Correction – Replaced the word “obligations” with objections in Comment 2.