Well, it seems like you all are kicking my butt at these questions. Congratulations (jerks). Well, today is “Real Property,” which sucks. Except that I’m good at it. Except when it comes to applying the Rule Against Perpetuities. Because that Rule is incomprehensible, I’ll not ask one those, even though those were the questions I missed today. See the comments section for today’s answer!)
Real Property (beware! a trick question today!)
A buyer entered into a written contract with a seller to purchase his commercial property for $100k. The contract did not specify the quality of title to be conveyed and made no mention of easements or reservations. The closing was set for Nov. 25, three months after the signing of the contract. Shortly thereafter, the buyer obtained a survey of the property, which revealed that the city had an easement for the public sidewalk that ran in front of the store. Because this actually enhanced the value of the property, the buyer did not mention it to the seller.
Subsequently, buyer found a better location. On Nov. 1, the buyer notified the seller that she no longer intended to purchase the property. The seller told her that he intended to hold her to the contract. At closing, the buyer refused to tender the purchase price, claiming that the seller’s title was unmarketable and citing the sidewalk easement as proof. In a suit for specific performance, the seller will most likely:
a) Prevail, because the contract did not specify the quality of title to be conveyed
b) Prevail, because the buyer was aware of the visible easement and it enhanced the value of the property
c) Not prevail, because an easement not provided for in the contract renders title unmarketable
d) Not prevail, because the buyer gave the seller sufficient notice of her change in plans and yet he made no effort to try to find another purchaser