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Real Property • Conveyances
PROP#162
Legal Definition
If the seller does not cure the title defect, the buyer is entitled to rescission, damages, specific performance with abatement, and a quiet title suit. But if closing occurs, the contract and deed merge and the seller's liability ends.
Plain English Explanation
There are many steps in purchasing real property. For example, after you sign a contract to purchase the property, you don't magically and immediately get the title to the property. That comes later. Once a property has closed, the contract no longer exists to enforce, which means if a party wants to enforce a part of the contract, they must do it before closing. In other words, if a problem exists with the title of a property, the buyer must first deal with that before closing. Their options are:
(1) Rescission, meaning cancelling the contract;
(2) Damages, meaning whatever amount of money is necessary to make it worth inheriting the title problem (such as costs to fix it);
(3) Specific performance with abatement, meaning they can force the seller to sell the property as-is at a reduced, discounted price; and
(4) Quiet title, meaning the seller is forced to settle whatever drama or defect is currently burdening the title of the property so that the contract can proceed forward and close.
(1) Rescission, meaning cancelling the contract;
(2) Damages, meaning whatever amount of money is necessary to make it worth inheriting the title problem (such as costs to fix it);
(3) Specific performance with abatement, meaning they can force the seller to sell the property as-is at a reduced, discounted price; and
(4) Quiet title, meaning the seller is forced to settle whatever drama or defect is currently burdening the title of the property so that the contract can proceed forward and close.
Related Concepts
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