Margaret enters into a contract to sell her Bronx property to Paul. The contract includes a clause stating that Margaret will provide marketable title. A title search reveals an old easement that was never properly recorded but is still valid. Paul refuses to close, claiming the title is unmarketable. Under New York law, is Paul correct?
Correct Answer
C) It depends on whether the easement materially affects the property's use or value
Under New York law, marketable title means title free from reasonable doubt and material encumbrances. An easement may or may not render title unmarketable depending on its impact on the property's use and value. Minor easements that don't significantly affect the property may not make title unmarketable, while substantial easements might.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
More Contracts Ny Real Property Law Questions
Karen's contract to purchase a house in Westchester includes both an inspection contingency and an appraisal contingency. The inspection reveals $8,000 in needed repairs, and the appraisal comes in $12,000 below the purchase price. Karen wants to proceed with the purchase. What is her best strategy under New York law?
A buyer in New York breaches a contract to purchase a $600,000 home and forfeits a $30,000 earnest money deposit. The seller incurs $8,000 in additional carrying costs and $4,000 in remarketing expenses before selling to another buyer for $585,000. What is the seller's total recoverable damages?
A real estate agent is explaining the differences between cooperative and condominium ownership to a client. All of the following statements about New York cooperatives are accurate EXCEPT:
In New York, a buyer breaches a real estate contract and forfeits their earnest money deposit. The seller then resells the property for the same price to another buyer. What additional damages can the seller typically recover?
In a New York residential sale, the buyer's attorney requests a contract modification after the attorney review period. The seller's agent asks the buyer's agent to explain the legal implications of accepting this modification. How should the buyer's agent respond?
- → In New York real estate law, what is the legal term for the buyer's right to examine the property's title and raise objections before closing?
- → Elena's cooperative building in Manhattan is facing financial difficulties and may need a special assessment. As a shareholder, what is Elena's potential liability if the cooperative corporation defaults on its underlying mortgage?
- → A New York purchase contract includes the provision: 'Buyer to assume seller's existing mortgage of approximately $180,000.' At closing, the actual mortgage balance is $186,500. The buyer objects to the higher amount. Which statement is most accurate?
- → A cooperative board in Manhattan interviews prospective purchasers and asks about their marital status, plans for children, and country of origin. Which aspect of this interview process violates New York law?
- → A seller in New York breaches a contract for a $750,000 home. The buyer must purchase a comparable property for $785,000 and incurs $3,200 in additional costs (inspection, appraisal, attorney fees). The buyer also loses $1,800 in non-refundable application fees from their original lender. What are the buyer's total recoverable damages?
- → Lisa includes a home sale contingency in her offer to purchase a property in Buffalo. The contingency states she has 45 days to sell her current home. On day 40, Lisa receives an offer on her current home but the closing is scheduled for day 50. What should Lisa do to avoid losing her purchase contract?
- → A New York seller of a rent-controlled apartment building breaches the purchase contract by failing to provide required tenant estoppel certificates and rent roll documentation. The buyer discovers that several apartments are illegally deregulated. What is the buyer's most comprehensive remedy?
- → Mark's contract to purchase a co-op apartment in Manhattan includes an inspection contingency that allows him 10 days to complete inspections and notify the seller of any objections. On day 8, Mark discovers significant plumbing issues and immediately notifies the seller in writing. Under New York law, what happens next?
- → In New York, a seller breaches a purchase contract by failing to deliver a certificate of occupancy required by the contract terms. The buyer wants the property but needs the certificate for their intended commercial use. What remedy should the buyer seek?
- → James signs a purchase contract for a house in Buffalo on Monday. On Wednesday, he changes his mind and wants to cancel. The contract contains no contingencies or right of rescission. Under New York law, what are James's options?
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