A Wyoming purchase agreement specifies that the seller will provide a general warranty deed at closing. Before closing, the buyer's title search reveals an unresolved mechanic's lien filed by a contractor who performed roof repairs on the property. The seller refuses to address the lien. Under Wyoming law, what is the buyer's most appropriate course of action?
Correct Answer
C) Terminate the contract because the seller cannot deliver marketable title as required by the purchase agreement
A general warranty deed in Wyoming conveys the property with a guarantee that the grantor will defend the title against all claims, including liens. When a purchase agreement requires delivery of a general warranty deed, the seller is obligated to convey marketable title free of encumbrances such as mechanic's liens. If the seller refuses to clear the lien and cannot deliver marketable title, the buyer has grounds to terminate the contract and recover the earnest money deposit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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