A buyer and seller enter into a written contract for the sale of a parcel of land. Prior to closing, the seller promises to repair a fence on the property. At closing, the deed does not mention this promise, but the buyer later discovers that the fence was never repaired. Can the buyer hold the seller accountable for the failure to repair the fence?
Yes, because the contract required the fence to be repaired before closing.
No, because the doctrine of merger eliminates contract terms not included in the deed after closing.
Yes, because a verbal agreement at closing modified the contract terms.
No, because the seller’s failure to repair the fence invalidated the agreement's intent.
Under the doctrine of merger, promises made in a real estate contract are incorporated into the deed upon the transfer of title at closing. Once the deed is delivered and accepted, any obligations or terms from the contract that are not explicitly included in the deed are extinguished. This reinforces the finality and integration of the deed into the transaction. As such, the buyer cannot pursue the seller for breach of contract related to the fence repair, because the deed did not incorporate that obligation. Other answers are incorrect because they fail to recognize how merger operates to limit enforceability of contract terms that are excluded from the deed.
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What is the doctrine of merger in real estate transactions?
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What happens if a promise made prior to closing is not included in the deed?
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Are verbal agreements enforceable if they happen at closing?