What can a buyer expect if there are unmarketable titles discovered post-closing?

Prepare for the Real Property Multistate Bar Exam with detailed quizzes, flashcards, and multiple choice questions. Each question includes hints and explanations to help you understand key concepts and excel in your test!

A buyer can expect that unmarketable titles discovered post-closing can result in a limitation on their property rights. When a title is deemed unmarketable, it means that there are issues or defects that could affect the buyer's ability to sell or transfer the property freely. These issues can include unresolved liens, encumbrances, or defects in the title history that might make it difficult to establish clear ownership or conveyance of the property.

Such limitations can significantly impact the buyer's use and enjoyment of the property, as well as their ability to obtain financing based on the property's title. Therefore, understanding the implications of a title that is not marketable helps appreciate the risks associated with property transactions and the importance of conducting thorough due diligence prior to closing.

The other options do not accurately reflect the consequences a buyer faces regarding unmarketable titles. The contract does not automatically terminate due to title issues, the sales price would not logically increase in the presence of title defects, and buyers may not be free from additional liabilities that arise if the title issues were not disclosed prior to closing.

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