If a buyer discovers a title defect before closing, what are their options?

When a buyer discovers a title defect before closing, they have several options to address the situation, and one of the most viable pathways is to pursue a breach claim and seek damages. This option is appropriate because the presence of a title defect may significantly impact the buyer’s ability to obtain clear ownership of the property, which is crucial for any real estate transaction.

If the buyer finds a defect, they can argue that the seller did not fulfill their obligations to provide a clear title, which is often a fundamental condition of the sale. By filing a breach claim, the buyer can seek damages that may include the costs related to resolving the title issue or even the loss of potential investment if the defect remains uncorrected.

In contrast to the other options, which are less suitable in the context of dealing with a title defect, the breach claim option allows the buyer legal recourse to address the seller's failure to convey a marketable title. This helps protect the buyer's interests and enables them to consider other alternatives before closing, such as negotiating the necessary rectifications or potentially walking away from the deal if the issue cannot be resolved satisfactorily.