Carlos enters into a contract to purchase a condominium in Brooklyn. The contract states that Carlos will receive 'insurable title' rather than 'marketable title.' At closing, the title company discovers a minor lien that would prevent them from issuing a standard title insurance policy. Under New York law, can Carlos refuse to close?
Correct Answer
C) No, because insurable title only requires that title insurance can be obtained at standard rates
In New York, 'insurable title' is a lower standard than 'marketable title.' Insurable title means the title company will issue a policy at standard rates, even if minor defects exist that would be covered by the policy. The seller only needs to provide title that a reputable title company will insure at regular rates.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
More Contracts Ny Real Property Law Questions
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 New York buyer exercises their right to cancel a purchase contract within the attorney review period. The seller demands to keep the earnest money as compensation for taking the property off the market. What is the legal outcome?
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?
Tom is buying a condominium in Syracuse and reviewing the purchase contract. What type of title insurance should Tom expect to receive?
Jennifer owns a condominium unit in Albany and wants to rent it out. What approval is required under New York condominium law?
- → Karen enters into a contract to purchase a cooperative apartment in Manhattan. The contract is contingent upon board approval. The co-op board rejects Karen's application without stating reasons. Under New York law, what is the effect on the contract?
- → A New York purchase contract specifies that the buyer will provide 'good faith deposit' but does not specify the amount. What is the legal effect of this provision?
- → In New York real estate transactions, what is the primary role of attorneys?
- → Who typically conducts the closing in a New York residential real estate transaction?
- → In a typical New York residential real estate transaction, at what stage do attorneys commonly become involved?
- → What typically happens during the attorney review period in a New York real estate contract?
- → In New York, can a real estate broker prepare a deed for a property transfer?
- → A real estate agent in New York is asked by their client to recommend a specific attorney for the transaction. What is the most appropriate way for the agent to handle this request?
- → A New York real estate agent prepares a purchase offer using a standard form contract. After the seller accepts the offer, what typically happens next regarding attorney involvement?
- → What is the primary difference between the role of a real estate agent and an attorney in a New York real estate transaction?
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Previous Question
Jennifer contracts to purchase a house in Albany from Steven for $400,000. The contract includes a clause requiring Jennifer to obtain homeowner's insurance before closing. Three days before closing, Jennifer's insurance application is denied due to the property's proximity to a flood zone. Steven refuses to extend the closing or modify the contract. Under New York law, what is the most likely result?
Next Question
Sarah, a licensed real estate salesperson in New York, is representing a buyer who asks her to explain the legal implications of a specific clause in the purchase contract. The buyer wants to know if the clause will protect him from liability in case of a title defect. What should Sarah do?