Recommendations for Buyers and Sellers

Oct 13, 2025 by talynt.org 14 views

Alabama Real Estate Contract Dispute: Understanding the Implications of a Failed Deed Conveyance

Introduction

In the world of real estate, contracts are the backbone of any successful transaction. They outline the terms and conditions of the sale, including the price, payment terms, and the responsibilities of both the buyer and the seller. However, when a contract includes a provision that is not clearly defined or is subject to interpretation, it can lead to disputes and potential litigation. This article will explore the case of Candace Dixon and Alana Mendes, who entered into a contract for the sale of a house in Alabama for $205,000, and the implications of a failed deed conveyance.

The Contract and the Provision

The contract between Candace Dixon and Alana Mendes included a provision that stated: "if seller is unable to convey marketable title, buyer may elect to terminate this contract and receive a full refund of her deposit." This provision is known as a "title contingency" and is a common feature in real estate contracts. It allows the buyer to terminate the contract and receive a refund of their deposit if the seller is unable to convey marketable title to the property.

The Failure to Convey Deed

The sale was supposed to close by November 30, and the parties were to exchange the deed for the price. However, it appears that Candace Dixon was unable to convey marketable title to the property, which triggered the title contingency provision in the contract. Alana Mendes, as the buyer, had the option to terminate the contract and receive a full refund of her deposit.

Implications of a Failed Deed Conveyance

A failed deed conveyance can have significant implications for both the buyer and the seller. For the buyer, it means that they may be able to terminate the contract and receive a refund of their deposit. However, if the buyer decides to proceed with the purchase, they may be able to negotiate a lower price or request that the seller provide additional concessions to make up for the failed conveyance.

For the seller, a failed deed conveyance can be a major setback. It may require them to re-examine their title and take steps to clear any defects or issues that prevented the conveyance. This can be a time-consuming and costly process, and may ultimately result in a loss of revenue for the seller.

Understanding the Concept of Marketable Title

Marketable title is a concept that is central to real estate law. It refers to a title that is free from any defects or issues that would prevent the buyer from taking possession of the property. A marketable title must be one that is:

Free from any encumbrances, such as mortgages or liens
Not subject to any disputes or controversies
Not affected by any zoning or land-use restrictions
Not subject to any other defects or issues that would prevent the buyer from taking possession of the property

The Importance of Due Diligence

Due diligence is a critical component of any real estate transaction. It involves the buyer conducting a thorough investigation of the property to identify any potential issues or defects. This may include reviewing the property's title, conducting a physical inspection of the property, and reviewing any relevant documents or records.

In the case of Candace Dixon and Alana Mendes, it appears that Candace Dixon failed to provide marketable title to the property, which triggered the title contingency provision in the contract. This highlights the importance of due diligence in real estate transactions and the need for buyers and sellers to carefully review the terms and conditions of any contract before signing.

Conclusion

The case of Candace Dixon and Alana Mendes highlights the importance of carefully reviewing the terms and conditions of any real estate contract. The provision in the contract that stated "if seller is unable to convey marketable title, buyer may elect to terminate this contract and receive a full refund of her deposit" is a common feature in real estate contracts and is designed to protect the buyer in the event of a failed deed conveyance. However, it also highlights the need for buyers and sellers to carefully review the terms and conditions of any contract before signing and to conduct thorough due diligence to identify any potential issues or defects.

Recommendations for Buyers and Sellers

Carefully review the terms and conditions of any real estate contract before signing
Conduct thorough due diligence to identify any potential issues or defects
Ensure that the seller provides marketable title to the property
Understand the concept of marketable title and the implications of a failed deed conveyance
Consider seeking the advice of a real estate attorney or other professional to ensure that your rights are protected.

Understanding the Alabama Real Estate Code

The Alabama Real Estate Code is a comprehensive set of laws and regulations that govern real estate transactions in the state. It includes provisions related to the sale of real property, including the requirements for marketable title and the implications of a failed deed conveyance.

Section 35-4A-101: This section defines the term "marketable title" and outlines the requirements for a title to be considered marketable.
Section 35-4A-102: This section outlines the implications of a failed deed conveyance and the rights of the buyer and seller in such a situation.
Section 35-4A-103: This section provides guidance on the due diligence requirements for buyers and sellers in real estate transactions.

Conclusion

In conclusion, the case of Candace Dixon and Alana Mendes highlights the importance of carefully reviewing the terms and conditions of any real estate contract and conducting thorough due diligence to identify any potential issues or defects. The provision in the contract that stated "if seller is unable to convey marketable title, buyer may elect to terminate this contract and receive a full refund of her deposit" is a common feature in real estate contracts and is designed to protect the buyer in the event of a failed deed conveyance. However, it also highlights the need for buyers and sellers to carefully review the terms and conditions of any contract before signing and to understand the concept of marketable title and the implications of a failed deed conveyance.
Alabama Real Estate Contract Dispute: A Q&A Guide

Introduction

In our previous article, we explored the case of Candace Dixon and Alana Mendes, who entered into a contract for the sale of a house in Alabama for $205,000. The contract included a provision that stated: "if seller is unable to convey marketable title, buyer may elect to terminate this contract and receive a full refund of her deposit." This provision is known as a "title contingency" and is a common feature in real estate contracts. In this article, we will answer some of the most frequently asked questions about real estate contracts and the implications of a failed deed conveyance.

Q&A

Q: What is a title contingency?

A: A title contingency is a provision in a real estate contract that allows the buyer to terminate the contract and receive a full refund of their deposit if the seller is unable to convey marketable title to the property.

Q: What is marketable title?

A: Marketable title is a title that is free from any defects or issues that would prevent the buyer from taking possession of the property. A marketable title must be one that is:

Free from any encumbrances, such as mortgages or liens
Not subject to any disputes or controversies
Not affected by any zoning or land-use restrictions
Not subject to any other defects or issues that would prevent the buyer from taking possession of the property

Q: What are the implications of a failed deed conveyance?

A: A failed deed conveyance can have significant implications for both the buyer and the seller. For the buyer, it may mean that they are able to terminate the contract and receive a full refund of their deposit. However, if the buyer decides to proceed with the purchase, they may be able to negotiate a lower price or request that the seller provide additional concessions to make up for the failed conveyance.

Q: What is due diligence?

A: Due diligence is a critical component of any real estate transaction. It involves the buyer conducting a thorough investigation of the property to identify any potential issues or defects. This may include reviewing the property's title, conducting a physical inspection of the property, and reviewing any relevant documents or records.

Q: Why is it important to conduct due diligence?

A: Conducting due diligence is essential to ensure that the buyer is aware of any potential issues or defects with the property. This can help to prevent costly surprises down the line and ensure that the buyer is making an informed decision.

Q: What are some common defects or issues that can prevent a deed conveyance?

A: Some common defects or issues that can prevent a deed conveyance include:

Encumbrances, such as mortgages or liens
Disputes or controversies
Zoning or land-use restrictions
Other defects or issues that would prevent the buyer from taking possession of the property

Q: What can I do if I am a buyer and the seller is unable to convey marketable title?

A: If you are a buyer and the seller is unable to convey marketable title, you may be able to terminate the contract and receive a full refund of your deposit. Alternatively, you may be able to negotiate a lower price or request that the seller provide additional concessions to make up for the failed conveyance.

Q: What can I do if I am a seller and I am unable to convey marketable title?

A: If you are a seller and you are unable to convey marketable title, you may need to re-examine your title and take steps to clear any defects or issues that prevented the conveyance. This can be a time-consuming and costly process, and may ultimately result in a loss of revenue for you.

Conclusion

Recommendations for Buyers and Sellers

Carefully review the terms and conditions of any real estate contract before signing
Conduct thorough due diligence to identify any potential issues or defects
Ensure that the seller provides marketable title to the property
Understand the concept of marketable title and the implications of a failed deed conveyance
Consider seeking the advice of a real estate attorney or other professional to ensure that your rights are protected.

Understanding the Alabama Real Estate Code

Section 35-4A-101: This section defines the term "marketable title" and outlines the requirements for a title to be considered marketable.
Section 35-4A-102: This section outlines the implications of a failed deed conveyance and the rights of the buyer and seller in such a situation.
Section 35-4A-103: This section provides guidance on the due diligence requirements for buyers and sellers in real estate transactions.