What is a buyer's recourse if the seller fails to provide marketable title?

When a seller fails to provide marketable title, the buyer's recourse is the ability to rescind the contract based on breach. This is important because marketable title refers to a title that is free from significant liens, defects, or legal questions that would affect its value or conveyance. If the seller cannot deliver such a title, it constitutes a fundamental breach of the contract since the buyer is entitled to a clear and marketable title as part of the agreement.

Rescinding the contract means that the buyer can cancel the transaction and seek to recover any deposits or payments already made. This right is rooted in contract law, which allows parties to seek remedies when the terms of an agreement are not honored. In situations where title issues are discovered, this right protects the buyer from entering into an unfavorable situation where the purchased property may be subject to claims or title disputes.

Buyers should be aware that taking steps to demand a discount on the sale price or proceeding with the closing without resolving title issues may expose them to risks and potential legal complications later on. Filing a complaint with authorities is not typically a direct remedy available to a buyer in real estate transactions regarding issues of title. It is the contractual right to rescind that provides a direct and effective