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Jimbo Signs a Real Estate Contract with Nelson in Which

Question 22

Multiple Choice

Jimbo signs a real estate contract with Nelson in which he promises to provide evidence of a marketable title at the closing.At the closing, Jimbo fails to provide it, but Nelson, anxious to move into his new home, completes the transaction anyway.The deed did not mention any duties or covenants, including a duty to provide evidence of marketable title.Later, it is discovered that Nelson's land is subject to an unrecorded easement that seriously diminishes the property's value.In this situation:


A) Jimbo must pay Nelson damages since he did not deliver a marketable title.
B) Nelson can successfully sue for a breach of the implied warranty of habitability since the land is not as habitable as he thought it would be.
C) Under the "merger rule," Jimbo's promise merged with the deed and so now only the provisions contained in the deed are binding on the parties.
D) Jimbo's promise would be unenforceable under most states' Marketable Title Acts.

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