Difficulty: Medium

Average Score: 60%

A buyer may RESIST a price reduction from a seller due to defects in the title of a property by:

Rationale

A) applying for a new title insurance policy

A buyer may resist a price reduction due to defects in the title by applying for a new title insurance policy, as it provides protection against potential title defects and ensures that the buyer’s investment is safeguarded. This action allows the buyer to address the concern of title defects comprehensively, making it a rational choice to resist a price reduction.

B (receiving an opinion of title) YOUR ANSWER

Receiving an opinion of title involves a legal review of the title to identify defects, but it does not directly provide protection or assurance against these defects. While it may inform the buyer about potential issues, it does not resolve the concern or offer a financial safeguard like title insurance, meaning it does not effectively support the resistance to a price reduction.

C (signing a contract with the seller) YOUR ANSWER

Signing a contract with the seller is a commitment to purchase the property and does not address concerns about title defects. This choice does not empower the buyer to resist a price reduction, as it may imply acceptance of the current terms, regardless of any title issues. Therefore, it fails to provide a basis for resisting the pricing adjustments.

D (requesting the seller to show proof of ownership) YOUR ANSWER

Requesting proof of ownership can validate the seller's claim to the property but does not directly mitigate the buyer's concerns about title defects. This action may lead to more questions rather than resolving the issues, leaving the buyer in a vulnerable position without a clear strategy for resisting a price reduction.

Conclusion

A buyer facing title defects can effectively resist a price reduction by applying for a new title insurance policy, which offers essential protection and peace of mind. Other options, such as receiving an opinion of title, signing a contract, or requesting proof of ownership, do not provide the necessary assurance or protection against potential financial loss due to title defects, making them less effective strategies in this scenario.

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