Question

A seller entered into a written contract to sell a tract of land to an investor. The contract made no mention of the quality of title to be conveyed. The seller and the investor completed the sale, and the seller delivered a warranty deed to the investor. Soon thereafter, the value of the land increased dramatically. The investor entered into a written contract to sell the land to a buyer. The contract between the investor and the buyer expressly provided that the investor would convey a marketable title. The buyer's attorney discovered that the title to the land was not marketable, and had not been marketable when the original seller conveyed to the investor. The buyer refused to complete the sale. The investor sued the original seller for breach of contract, claiming damages from the seller's failure to convey marketable title, which resulted in the investor's loss of the sale to the subsequent buyer. Who is likely to prevail on this count?

Answer 1

Answer: The original seller, because her contract obligations as to title merged into the deed

Step-by-step explanation:

A Marketable title simply means a title which is free from any sort of threat of litigation or reasonable doubt. In a situation whereby a clear title of deed cannot be produced to a property, in a specific performance action, the prospective buyer might be expected to lose.

Based on the scenario explained, the original seller, will likely to prevail on this count because her contract obligations as to title merged into the deed.