A seller in Florida fails to deliver clear title by the closing date due to an unexpected lien. The buyer wants to proceed but needs more time. What is the most appropriate course of action?
Correct Answer
B) The parties should agree to extend the closing date to cure the title defect
When title defects can be cured and both parties want to proceed, extending the closing date by mutual agreement is the most practical solution. Option A is premature since the seller may be able to cure the defect. Option C is incorrect as this isn't necessarily a breach requiring damages if the defect can be resolved. Option D is wrong because contracts don't automatically void for curable title defects.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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