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Caravan Products Co. v. Ritchie

Decided: December 2, 1969.

CARAVAN PRODUCTS COMPANY, INC., A NEW YORK CORPORATION, PLAINTIFF-APPELLANT,
v.
ROY S. RITCHIE, ET AL., DEFENDANTS, AND CHELSEA TITLE AND GUARANTY COMPANY, DEFENDANT-RESPONDENT



For reversal and remandment -- Chief Justice Weintraub and Justices Jacobs, Francis, Proctor, Hall, Schettino and Haneman. Opposed -- None. The opinion of the Court was delivered by Haneman, J.

Haneman

Plaintiff contracted for the purchase of certain lands in the Borough of Totowa. The agreement of purchase contained a covenant against encumbrances but was silent on the specific subject of unconfirmed municipal special assessments. Subsequent to the execution of the above referred to agreement, plaintiff applied to Lawyers-Clinton Title Insurance Company of New Jersey (predecessor to defendant Chelsea Title and Guaranty Company) for title insurance. Pursuant to said application, Lawyers-Clinton issued a document entitled "Preliminary Report of Title" which reads in part as follows:

"Lawyers-Clinton Title Insurance Company of New Jersey hereby certifies to the applicant for guaranty under above application and

under the provisions thereof that it has examined the title to land * * * and finds title in [the seller] * * * subject only to the following estates, liens, defects and questions which, together with any others which may be found in continuing the search, are to be excepted in the guaranty which it will issue in the above amount when the title is properly closed and satisfactorily reported, unless documentary evidence of their removal be submitted which shall be satisfactory to this company: (Emphasis added)

1. Statutory and Municipal requirements relating to

land and buildings.

2. See Item No. 11 following. [Not here relevant]

3. Liability, if any, to Mechanics' Liens for work

done or materials supplied, if any.

4. Rights of tenants and occupants, if any.

Mortgages 5. NONE

Easements 6. NONE OF ...


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