Question
Sandy entered into a valid written contract with Bob for the sale of a parcel of real estate known as The Woods. The contract provided
Sandy entered into a valid written contract with Bob for the sale of a parcel of real estate known as The Woods. The contract provided that Sandy was to deliver marketable title. Prior to the date of closing, Bob learned that Peter had been in possession of The Woods for a period in excess of the statute of limitations required for adverse possession, and that he had paid no rent and entered into no agreement with Sandy. On the day title was to close, Bob refused to accept the deed tendered by Sandy on the ground that Sandy's title was not marketable, and demanded the return of his deposit. Sandy refused to return the deposit, and demanded that Bob accept the tendered deed. In litigation between Bob and Sandy, who will win?
Select one:
a. Sandy, unless Peter is successful in an action to quiet title to The Woods.
b. Sandy, if she was ready, willing and able to furnish Bob with a policy of title insurance which specifically insured against claims of adverse possessors.
c. Bob, but only if Peter has complied with all the requirements for acquiring title by adverse possession.
d. Bob, if there is doubt about whether Peter has acquired title by adverse possession.
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