Tuesday, April 22, 2008
A seller is required to provide marketable title on the closing date. To be considered marketable, the title must be free of encumbrances, such as mortgages, restrictive covenants and easements. Where the contract does not state that "time is of the essence," then the seller is required to provide marketable title within a reasonable time after the scheduled closing date. If the seller is able to do so, the buyer has no grounds for refusing to perform and the seller may sue for damages or specific performance.