What happens when a seller of land breaches the implied covenant of marketable title?

When a seller breaches the implied covenant of marketable title, it generally gives the buyer certain rights and remedies. The correct answer indicates that the closing date may be extended to allow the seller time to cure the defect in the title. This reflects the principle that sellers often have the opportunity to resolve issues related to their title before a sale is finalized.

In real estate transactions, the implied covenant of marketable title means that the seller must provide a title that is free from significant defects—those that would impair the buyer's ability to use or enjoy the property. If a buyer discovers a defect in the title that breaches this covenant but isn’t so severe as to void the contract outright—such as minor encumbrances or issues that can be resolved—the seller is given a reasonable period to remedy these defects before the buyer can pursue alternatives such as rescinding the contract or seeking damages.

This approach helps to balance the interests of both parties; it allows the seller a chance to fix issues that might otherwise derail the sale while also protecting the buyer from acquiring a property with unduly burdensome title problems. The remedies available also promote the stability and fluidity of real estate transactions.