Here is a listing of what title insurers look for when reviewing a real estate option agreement to determine its insurability:
1. Does the real estate option, prior to its being exercised, create an estate in land under state statutes?
2. Is the real estate option recordable under state statutes so that it constitutes constructive notice?
3. Does the real estate option violate any state statutes against perpetuities?
4. Does the real estate option clearly state the purchase price of the property being put under option?
5. Is the real estate option enforceable against third parties having actual or constructive notice under state statutes?
6. Is the optionee entitled under state statutes to be notified when any litigation is instituted against the title of the property being put under option?
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