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Land and House Property Corp (LHP) contracted with Mr. Smith to buy the freehold title of the Marine Hotel at Walton-on-the-Naze. Mr. Smith had advertised that it was let to Mr. Fleck, a most desirable tenant. Land and House agreed to buy the Hotel. However, Mr. Fleck, who had been overdue with rent, went bankrupt just before transfer of title.
A famous rule is that a thief cannot convey good title, so title searches are routine (or highly recommended) for purchases of many types of expensive property (especially real estate). In several counties and municipalities in the US a standard title search (generally accompanied by title insurance ) is required under the law as a part of ...
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