Robinson v. Khan

We are asked to decide whether a plaintiff in a quiet title action is entitled to an order striking from the record of title a recorded personal services contract that is not technically an encumbrance. Because the mere presence of the contract on record casts doubt on the owners’ otherwise unrestricted right to use and sell the property, we hold the recording of the document created a cloud on title, and the trial court erred in refusing a request to order it removed.

FACTS

The Robinsons entered into an “Incentive Bonus Agreement” with the Khans on January 28, 1987. The Agreement stated that…