What is a buyer's recourse if they discover unmarketable title after closing?

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When a buyer discovers unmarketable title after closing, the appropriate recourse is to notify the seller and provide a reasonable time to cure the defects. This is grounded in the principle that a seller typically has an obligation to deliver a clear title at the time of closing, and if defects arise afterward, the seller should have the opportunity to address and resolve those issues.

The process usually involves the buyer formally notifying the seller of the defects in the title. The seller may then be allowed a time period to either rectify the issues or provide a solution to ensure the title becomes marketable again. This approach encourages resolution and maintains the contractual relationship between the buyer and seller while also aligning with the expectation that sellers correct problems related to title that may hinder the buyer's ownership or ability to sell the property in the future.

Other potential recourses, such as filing for bankruptcy or seeking a court injunction, are not typically direct methods to handle title issues and involve significantly more complicated legal processes that are not immediately oriented toward resolving the title defect itself. Similarly, immediate rescission of the contract might not be the preferred or necessary route, as it does not allow for the seller to rectify the problem. Thus, notifying the seller and affording them a chance to cure the defects

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