Which sequence best describes handling a title defect before closing?

• A. Cancel sale unilaterally by the seller.
• B. Proceed without cure; risk to buyer.
• C. Change the property.
• D. Involve lawyer, attempt cure of title, adjust closing date or terms, and reissue documents.

Answer: (D)

When a title defect is found before closing, the priority is to ensure the title will be marketable and free of encumbrances at the moment of transfer. The best sequence is to involve a lawyer to oversee the cure of the title, pursue any necessary releases or payoffs, and coordinate updating the title with a new title search and, if needed, title insurance. At the same time, adjust the closing date or terms as required to allow time for the cure, and reissue all documents to reflect the corrected title and any changes. This approach protects both sides and keeps the transaction moving toward a properly documented, fundable closing.

Unilateral cancellation by the seller isn’t appropriate because it bypasses due process and remedies. Proceeding without a cure exposes the buyer (and lender) to risk of nonmarketable title. Simply changing the property doesn’t resolve the defect.