If a title issue is created by the seller's failure to deliver good record title, what is the expected outcome?

When a seller fails to deliver good record title, it creates a legitimate title issue that affects the buyer's interest in the property. In such a situation, the buyer is positioned to terminate the agreement. The contract for sale typically includes an implied covenant that the seller will provide good and marketable title, meaning that the title must be free of significant defects or encumbrances.

If the seller is unable to fulfill this obligation at closing, the buyer is justified in terminating the sale. This termination is based on the premise that the buyer is entitled to receive clear title as a prerequisite for the transaction. Accepting a property with a defective title or proceeding without a remedy would expose the buyer to risks that could undermine their investment or ownership rights.

While other actions like suing for specific performance or accepting the title as is may seem viable in some contexts, they do not align with standard recourse when clear title cannot be provided. The buyer's right to terminate the agreement safeguards them from entering into a contract that could lead to future legal complications stemming from an unsatisfactory title.