A seller entered into a written contract to sell a tract of land to a buyer. The buyer was to pay $1,500 per month for five years, at which time the seller would deliver a warranty deed. The contract was silent as to the quality of title to be conveyed. After making 12 payments, the buyer discovered that a neighbor had an easement of way over the land, which was not discussed at the time the seller and buyer entered into the contract. The neighbor had not used the easement over the previous year because she had been out of the country. On the basis of the easement, the buyer wishes to cancel the contract. Which party is more likely to prevail? A The seller, because the neighbor's easement has been extinguished. B The seller, because the buyer has no basis on which to rescind the contract. C The buyer, because the obligation to convey marketable title is implied. D The buyer, because the seller has breached the covenant against encumbrances.

Question

Haley

Social Studies

30 December, 23:58

A seller entered into a written contract to sell a tract of land to a buyer. The buyer was to pay $1,500 per month for five years, at which time the seller would deliver a warranty deed. The contract was silent as to the quality of title to be conveyed. After making 12 payments, the buyer discovered that a neighbor had an easement of way over the land, which was not discussed at the time the seller and buyer entered into the contract. The neighbor had not used the easement over the previous year because she had been out of the country. On the basis of the easement, the buyer wishes to cancel the contract. Which party is more likely to prevail? A The seller, because the neighbor's easement has been extinguished. B The seller, because the buyer has no basis on which to rescind the contract. C The buyer, because the obligation to convey marketable title is implied. D The buyer, because the seller has breached the covenant against encumbrances.

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Answers (1)

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Bailee Carrillo · Answer 1

Option B is correct.

The party which is more likely to prevail is the seller, because the buyer has no basis on which to rescind the contract.

Explanation:

A Contract is an authorized obligatory agreement which identifies and administers the rights and duties of the contractors to the agreement. A contract is lawfully enforceable because it reaches the conditions and consent of the order. An agreement generally includes the exchange of money, goods & services, or obligations of any of these.

Further Explanation:

In the context of real estate, the nature of a contract is an exchange of (a) money from the customer for (b) some conveyance of title, and any quality of title from the retailer.

There are many other significant provisions of a contract but the exchange of cash for the title to real estate is the core activity taking place.

1. Warranty Deed: in the context of the real estate, a Warranty Deed, is a kind of document that presents the greatest amount of security to the customer of property. In this way, a Warranty Deed pledges or guarantees that the buyer owns the estate free and absolved of any notable charges, leases, or other encumbrances against it.

2. Contract Rescission: The term "Contract Rescission" is referred to as the cancellation or termination of a contract. Some other terminology is also used for this such as "cancellation" or "overturning". The main aim of contract rescission is to return the parties to their primary status before the contract was made.

Keywords:

Contract, Warranty deed, Contract Rescission.