[Disgruntled Buyer] Ciaran Lived in His Home for Five Years

question 17

Multiple Choice

[Disgruntled Buyer] Ciaran lived in his home for five years without doing any upkeep of any type. He was aware that the roof leaked, that he had defective piping, and that the air conditioning did not work, among other problems. He sold the home to Luisa. He did not tell her anything about the problems with the house. Shortly after Luisa moved in, there was a thunderstorm resulting in water streaming down from the ceiling. Within a few weeks of her moving in, pipes began to burst resulting in significant water damage. The air conditioner also failed to work when she turned it on for the first time. Luisa demanded that Ciaran refund her purchase price and take back the house. Ciaran sent her a letter providing as follows:
Dear Luisa,
Caveat emptor. You have marketable title.
Regards, Ciaran
Luisa is furious and wants to sue.
-Which of the following is meant by Ciaran's statement that Luisa has marketable title?

• A) That all taxes have been paid.
• B) That she has legal title and that there are no liens or restrictions on the property of which she is unaware.
• C) That Luisa has the legal title, not Ciaran, and that she, therefore, has responsibility for all repair.
• D) That all taxes have been paid, that Luisa (not Ciaran) has legal title and has responsibility for all repairs, and that there are no liens or restrictions on the property.
• E) That all taxes have been paid and that there are no liens or restrictions on the property, but not that Luisa has legal title.