Final answer:
When a seller breaches the implied covenant of marketable title, the buyer can sue for breach after closing and may agree to extend the closing date for the seller to cure the breach. The buyer may seek specific performance, or rescission might be a possible remedy.
Step-by-step explanation:
When a seller of land breaches the implied covenant of marketable title, the buyer has certain remedies. These remedies involve legally enforceable rights which allow them to address or mitigate the situation initiated by the breach. In particular, option A is true since the buyer may sue for breach after closing. Filing a lawsuit would allow the buyer to potentially receive compensation for the breach.
Option C is also partially correct since the closing date can sometimes be extended to allow the seller time to cure the breach. However, it would typically require bilateral agreement for this extension and cure period to occur. In contrast, in terms of option D, rescission can actually be a viable course of action. Rescission refers to nullifying the contract and returning both parties to their original state prior to entering the agreement.
Option B is false; since it is the seller who breached the covenant, the buyer, not the seller, would be the party able to seek specific performance, in which court would mandate the breaching party to fulfill their contractual obligations.
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