Question 37

A buyer may RESIST a price reduction from a seller by applying for a new title insurance policy.

A buyer may choose to apply for a new title insurance policy as a means of ensuring that any defects in the title are properly addressed, which can serve as a basis for resisting a price reduction.

A) applying for a new title insurance policy

This option is correct because obtaining a new title insurance policy can protect the buyer from potential issues related to defects in the title. By securing this insurance, the buyer demonstrates their commitment to ensuring a clear title, which may justify resisting any proposed price reductions.

B) receiving an opinion of title

While receiving an opinion of title can provide valuable insights into the state of the title, it does not offer the same level of protection as title insurance. An opinion may identify defects but does not necessarily give the buyer the leverage needed to resist a price reduction effectively.

C) signing a contract with the seller

Signing a contract with the seller does not directly address the issue of title defects. While it formalizes the agreement, it does not provide a mechanism for the buyer to resist a price reduction based on concerns over title issues.

D) requesting the seller to show proof of ownership

Requesting proof of ownership may clarify the seller's rights to the property, but it does not resolve potential defects in the title. This action is more about confirming ownership rather than providing a strong basis for resisting a price reduction.

Conclusion

Applying for a new title insurance policy is the most effective way for a buyer to address concerns about title defects and resist any proposed price reduction. Other options, while informative or procedural, do not provide the same level of protection or justification for negotiating the price. Thus, they fail to empower the buyer in the context of title-related negotiations.