Contracts

An Oklahoma buyer discovers after signing a purchase contract that the property has a deed restriction prohibiting commercial use. The buyer wanted to operate a business there. The buyer's best remedy may be:

ASue the seller for the full purchase price
BClaim mutual mistake if neither party knew of the restriction, potentially voiding the contract; or assert failure of a title condition if the contract required clear commercial use rights✓ Correct
CProceed with the purchase and ignore the restriction
DFile a complaint with OREC about the seller

Explanation

If the contract required that the property be usable for the buyer's intended commercial purpose, a deed restriction preventing that use may constitute a failure of a title contingency or mutual mistake of fact, potentially allowing the buyer to terminate and recover their earnest money.

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