Leslie and Mike Aaron, the sellers of Greenacre, and Tom Newsome, the buyer of Greenacre, agreed (in a written real estate contract) that the Aarons would sell Greenacre to Mr

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Leslie and Mike Aaron, the sellers of Greenacre, and Tom Newsome, the buyer of

Greenacre, agreed (in a written real estate contract) that the Aarons would sell Greenacre

to Mr. Newsome for $150,000 cash. Mr. Newsome hired you to conduct the real estate

closing. You conducted a title examination and found a mortgage recorded in the official

records of Saint Lucie County (where Greenacre is located) in which the Aarons (the

mortgagors) borrowed $40,000 from Century Bank (the mortgagee). The mortgage was

dated September 28, 2005 and recorded on the same date. What effect does the mortgage

have on the title to Greenacre? Do you think that a title insurance policy will be issued to

Mr. Newsome? Explain your answers.