A buyer in Spokane includes a title contingency in his purchase and sale agreement. The preliminary title report reveals an easement running across the back of the property that the buyer considers unacceptable. The buyer notifies the seller within the contingency period that he objects to the easement. The seller refuses to remove or resolve the easement. What is the buyer's most likely recourse under Washington real estate practice?
Correct Answer
B) The buyer may terminate the contract and recover his earnest money because the title contingency was properly exercised
A title contingency allows the buyer to review the preliminary title report and object to encumbrances, liens, or other title matters within the specified period. If the buyer timely objects and the seller cannot or will not resolve the objection, the buyer has the right to terminate the contract and recover the earnest money. The buyer followed the proper procedure by notifying the seller within the contingency period.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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