An Ohio purchase agreement fails at closing because the title company discovers an unresolved tax lien. The seller cannot clear the lien. Under Ohio law, what remedy is available to the buyer?
Correct Answer
A) The buyer may terminate the contract due to the seller's inability to deliver marketable title and recover earnest money and damages
Under Ohio contract law, if the seller cannot deliver marketable title (free of unresolved tax liens), the buyer may terminate the contract. The buyer is entitled to a return of earnest money and may pursue compensatory damages for losses incurred due to the failed transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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- → Grace, a buyer in Ohio, wants to know the difference between rescission and breach of contract. Under Ohio law, what is rescission?
- → Allen, an Ohio buyer, believes the seller's agent made negligent misrepresentations about the property's condition during the sale. Under Ohio law, who may Allen pursue for damages?
- → Oliver, an Ohio buyer, wants to understand the concept of 'mutual rescission' in the context of his purchase agreement. Under Ohio law, what is mutual rescission?
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