Escrow & Title
A Tennessee seller who is unable to convey marketable title by the agreed closing date may be:
AAutomatically released from the contract
BIn default, giving the buyer the right to terminate and receive their earnest money back or sue for specific performance✓ Correct
CGiven an automatic 30-day extension by TREC
DPermitted to substitute another property
Explanation
If a seller cannot deliver marketable title by the closing date (due to unresolved liens, defects in title, or other issues), the seller is in breach. The buyer may terminate and recover earnest money, or may pursue specific performance to compel the seller to cure the title defect and close.
Related Tennessee Escrow & Title Questions
- In Tennessee, 'constructive notice' through recording means that:
- In Tennessee, which of the following best describes 'title insurance'?
- In Tennessee, an 'ALTA survey' is more comprehensive than a standard survey because it:
- In Tennessee, 'abstracting' a title means:
- In Tennessee, a 'chain of title' refers to:
- A closing statement's proration of property taxes assumes that taxes are paid:
- A quitclaim deed:
- In Tennessee, a 'lender's inspection' or 'draw inspection' during construction lending verifies:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →