Also known as: outstandings · unpaid · due · pending
Written by attorneys — see sources below.
An encumbrance or claim on real property that has not been released or extinguished. Such an interest may render title unmarketable if it creates reasonable doubt for a prudent purchaser.
Otto Osman contracts to sell Blackacre to Octavia Okonkwo. A survey reveals an easement granted to a neighbor ten years earlier that was never released. The easement remains outstanding. Octavia refuses to close because the outstanding interest prevents delivery of marketable title.
Otto Osman contracts to sell Blackacre to Octavia Okonkwo. A survey reveals an unreleased covenant running with the land that was never extinguished. The covenant remains outstanding. Octavia refuses to close because the outstanding interest prevents delivery of marketable title.
Otto Osman contracts to sell Blackacre to Octavia Okonkwo. A survey reveals an unreleased easement granted to a neighbor that was never extinguished. The easement remains outstanding. Octavia refuses to close because the outstanding interest prevents delivery of marketable title.
Otto Osman contracts to sell Blackacre to Octavia Okonkwo. A survey reveals an unreleased lien that was never extinguished. The lien remains outstanding. Octavia refuses to close because the outstanding interest prevents delivery of marketable title.
Principal Oakley Osei hires an agent to negotiate a land purchase. The agent learns of an outstanding lien but does not report it. Under the agency standard the agent should have known the lien through ordinary care. The principal may rescind because the outstanding fact was not disclosed.
Otto Osman contracts to sell Blackacre to Octavia Okonkwo. A survey reveals an unreleased covenant that was never extinguished. The covenant remains outstanding. Octavia refuses to close because the outstanding interest prevents delivery of marketable title.
An interest is outstanding when it has not been released or extinguished and continues to affect the property. The buyer may refuse performance if the outstanding interest creates reasonable doubt about marketability.
Supporting sources
…nominated the applicants to the Senate; that the Senate advised and consented to the appointments; that commissions in due form were signed by the President and the seal of the United States affixed by the Secretary of State; that the applicants had requested delivery of their commissions which request had not…