Escrow & Title
In Kansas, what happens if a seller cannot deliver marketable title at closing?
AThe buyer must close regardless
BThe buyer may terminate the contract and receive a full refund of earnest money✓ Correct
CThe buyer must accept the title defects
DThe title company guarantees clear title regardless of defects
Explanation
If a seller cannot deliver marketable title as required by the contract, the buyer generally has the right to terminate the contract and recover their earnest money deposit.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
State-Specific Concepts
Escrow Disputes
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