L. C. Stroh & Sons, Inc. v. Batavia Homes & Development Corp.

The problem is whether a reference to an unrecorded contract contained in a prior conveyance in the chain of title to the premises in question renders the title unmarketable.

There is a contract in existence whereby the plaintiff is to sell and the defendant is to purchase the premises if plaintiff can ‘ ‘ furnish * * * a good and marketable title, free and clear from liens and encumbrances.” This action is to specifically enforce that contract with an incidental prayer that the court declare the title to be marketable.

The exact language of the recital is: “ Subject to the terms of an…