What date does merchantable title/curative work go into effect in Louisiana?
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What date does merchantable title/curative work go into effect in Louisiana?
I’m selling a home and do not want to extend the closing date because the buyer did not obtain financing within allotted time frame. Buyer agent now says buyer evoking merchantable title because the title company had to clear up something on the title from previous owner curative work but it was clear PRIOR to act of sale date on contract. Are they automatically granted an additional 30 days b/c curative work was involved? This seems unfair. I could understand if it still wasn’t cleared up but title was clear 14 days prior to act of sale date on contract.
Asked on November 23, 2017 under Real Estate Law, Louisiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You must provide clear title: that is implicit in the contract of sale for the home, since you cannot provide what the buyer is paying for (clear title) if title is not clear. If at any time prior to the closing actually occuring, a cloud on title or other impediment to providing clear title occurs or is discovered, the buyer could terminate the sale for breach of contract without penalty (i.e. get his/her deposit back) and/or sue you for monetary compensation. It is likely better to extend the closing date to allow the issue to be resolved. It is only after closing, after you have transferred title to the buyer, that you would not be liable for a cloud on title discovered later or responsible to provide clear title.
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