What must a seller convey during a sale and purchase contract?

A seller must convey clear and merchantable title during a sale and purchase contract to ensure that the buyer receives ownership of the property without any legal encumbrances or disputes. This entails that the title to the property is valid, free from liens or claims that might affect the buyer’s ability to fully utilize and enjoy the property. A merchantable title means that the title can be readily accepted by a reasonable buyer and provides assurance that they can take full ownership without future legal challenges.

In real estate transactions, establishing clear title is foundational, as it protects the interests of the buyer and ensures a smooth transaction. Other options, such as providing a sales pitch or personal financial history, are not legally required in this context. A verbal agreement on property value does not hold the same legal weight as a documented agreement regarding the title, making it less critical in the formal processes of a sale and purchase contract.