Under the TREC contract, the buyer obtains the title commitment and discovers that the property has a mechanics' lien filed by a contractor for unpaid work. The buyer objects within the specified timeframe. The seller claims the lien is invalid because the work was never completed. Under the contract, the seller must:
Correct Answer
A) Attempt to cure the title objection by removing the mechanics' lien, regardless of the seller's belief about its validity
When the buyer properly objects to a title exception, the seller has an obligation to attempt to cure the defect. The seller must take action to remove the mechanics' lien, which may involve paying the contractor, negotiating, or pursuing legal action to remove the lien.
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Related Concepts
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.
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.
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