A used car lot owner sells via a land sales contract to a dealer. The buyer discovers that the seller’s father only has a life estate and a future interest in the property. The father promises to deliver the son $25,000 if the sale proceeds. On closing, the dealer refuses to close. The contract contains an implied covenant of marketable title. Which statement is correct?

• A. The dealer must close because marketable title is not implied in a contract.
• B. The title is unmarketable due to the son’s potential interest, so closing is not required.
• C. The dealer can close if the father funds the $25,000 promise.
• D. The son’s interest is irrelevant to marketability.

Answer: (B)