Question

during the inspection period under a contract, the buyer discovered that there was a title defect that needed to be rectified. the parties are uncertain about the amount of time it will take to correct the problem. what should they do?

Answer 1

When a title defect is found, parties should negotiate a resolution which may include an extended inspection period, price adjustments, or escrow arrangements, with the assistance of a real estate attorney.

Step-by-step explanation:

When a buyer discovers a title defect during the inspection period under a contract, and there is uncertainty about the time it will take to correct the problem, the parties should negotiate an agreement to address this issue. They might consider extending the inspection period and delaying closing until the title defect is resolved.

Alternatively, they could agree on a fair reduction of the purchase price or the seller could provide a temporary solution, such as putting funds in escrow, to cover potential costs related to the defect. Clear communication and the advice of a real estate attorney can be crucial in finding a satisfactory resolution for both parties.