Contracts

A Nebraska purchase agreement requires the seller to provide title 'free and clear of all encumbrances.' The title search reveals a utility easement. The buyer may:

ACancel the contract and receive their earnest money back
BBe required to accept title with the utility easement✓ Correct
CRequire the seller to remove the easement
DOnly request a price reduction

Explanation

Utility easements are typically disclosed and considered an encumbrance a buyer must accept because they cannot be practically removed. Courts generally hold that common utility easements do not constitute a title defect warranting cancellation.

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