Bar Exam — MBE (Multistate Bar Exam)Real PropertyMedium
A buyer and seller entered into a written agreement for the sale of a residential property. The contract specified a purchase price of $300,000, a closing date of June 1st, and described the property by its street address, "123 Main Street, Anytown, State." However, the contract failed to include any mention of the type of deed to be conveyed. On the closing date, the seller tendered a quitclaim deed, which the buyer refused, demanding a general warranty deed. The seller argued that since the contract was silent, any deed was acceptable. Which of the following statements is most accurate regarding the seller's obligation?
- AThe seller is obligated to provide a marketable title, typically conveyed by a general warranty deed, unless otherwise specified.
- BThe seller is obligated to provide a special warranty deed, as it offers a compromise between a quitclaim and a general warranty deed.
- CThe seller is only obligated to provide a quitclaim deed, as the contract did not specify a particular deed type.
- DThe seller is obligated to provide a general warranty deed, as it is the most common type of deed in residential transactions.
Show answer & explanationAnswer & explanation
Correct answer: A. The seller is obligated to provide a marketable title, typically conveyed by a general warranty deed, unless otherwise specified.
Unless otherwise specified in the contract, a seller of real property is generally obligated to convey marketable title. A general warranty deed is the customary instrument for conveying marketable title, as it provides the most comprehensive covenants of title.
Why the other options are wrong
- B. A special warranty deed provides fewer protections than a general warranty deed and is not the default obligation unless agreed upon.
- C. A quitclaim deed conveys whatever interest the grantor has, with no warranties, and does not satisfy the implied obligation of marketable title.
- D. While common, 'most common' is not the legal basis for the obligation. The obligation stems from marketable title.
Marketable Title
A title to real property that is free from reasonable doubt as to its validity and would be accepted by a reasonably prudent buyer.
- Implied in most real estate contracts unless disclaimed.
- Typically conveyed by a general warranty deed.
- Free from encumbrances, defects, and reasonable doubt.
Memory trick: Silent contract, loud marketable title.