An Ohio seller discovers a title defect 3 days before closing that cannot be cured before the scheduled closing date. The purchase agreement has a time-is-of-the-essence clause. Under Ohio practice, what is the seller's best course of action?
Correct Answer
C) Notify the buyer promptly and request an extension to cure the defect
The seller's best course of action is to promptly notify the buyer about the title defect and request an extension to cure. Even with a time-is-of-the-essence clause, the buyer may agree to a reasonable extension. Transparency and prompt communication protect the seller from additional liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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