Question

A seller agreed to sell a tract of land by an enforceable written contract to a buyer for an agreed price. At the time and place designated for closing, the seller tendered the deed to the land, but the buyer refused to complete the transaction because of a secured note on the land, saying that the contract required the seller to supply a deed free of encumbrances. The seller responded that she intended to pay the secured loan, which was substantially less than the contract price, with the proceeds of the sale of the land. The seller offered to put the proceeds of the sale in escrow for that purpose, for which the buyer could pick the escrow agent. The buyer refused the seller's proposal. The seller then brought suit against the buyer for specific performance of the land sale contract. What is the seller's best argument in support of her claim for relief

Answer 1

Answer: Seller has right to use proceeds to settle the loan.

Explanation:

The Seller has the right to use the proceeds from the sale of a house to settle debt and this is what this seller is offering. The seller also suggests an escrow account which would significantly reduce the risk of default by the seller after being paid.

The seller can argue this in court and have a fair chance of winning because they fully disclosed the fact of the loan to the buyer and told the buyer how they planned to settle it, method which they had the right to use when settling debt of this nature.