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Seller and Buyer agree to transfer ownership of Brownacre. They execute a residential real estate sales contract similar to the one Malloy & SMith have
Seller and Buyer agree to transfer ownership of Brownacre. They execute a residential real estate sales contract similar to the one Malloy & SMith have supplied to the class. At the time of the contract, nothing was said in it or orally about the kind of title Seller promised to transfer. Prior to the Closing, you as Buyer's attorney conducted a title search in the county recorder's office. You discovered that there was an outstanding lien recorded against the property in favor of Lucy (a judgement creditor in a lawsuit against Seller). #9 : Just before the Closing Buyer tells you that he wants out of the deal. He has checked and discovered that the value of all real estate has gone down 30% since he executed the real estate sales contract with Seller. (of course) Seller insists on Closing the sale and threatens a lawsuit against the Buyer if Buyer fails to perform. What is your advice to your client Buyer? Keep in mind the role of transactional attorney as advisor/planner for his client. Quick answers are not always appropriate. (A) In an action for specific performance of the residential real estate sales contract, Seller is likely to win because there is nothing in their contract about title. Thus Buyer should close. (B) In an action for specific performance of the residential real estate sales contract, Seller is likely to lose because Seller signed the contract with "unclean hands" because Seller did not have clear title to Brownacre at the time he signed the Contract. Thus, Buyer does not need to close. (C) IN an action for specific performance of the residential real estate sales contract, Seller is likely to lose because the failure to mention title in the Contract means it is voidable on grounds of mistake. Thus, Buyer does not need to close. (D) You are not absolutely sare of what advice to provide to your client. However, you are certain that none of the suggested answers ("A" "B" or "C") is correct. You will continue to ponder in order to provide appropriate advice
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