Lucas v. Independent Sch. An outstanding easement makes title to realty unmarketable in a situation where the title to be conveyed as specified in the purchase agreement has not been made subject to such easement. The purchase agreement was not made subject to an easement. Buyers had the right to know of the easement prior to signing the purchase agreement. Sellers' failure to disclose the easement, and buyers' later discovery, makes the realty unmarketable.
Marketable title is condition precedent to enforcing a contract.
In an executory contract for the sale of land, compliance with an agreement by the seller to furnish the buyer with an abstract showing a good and marketable title to the land, is a condition precedent to his right to enforce the contract. Sellers argue that they negotiated with the city to transform the quitclaim deed into a beneficial easement and therefore, buyers cannot claim that the title was unmarketable. However, sellers did not get the deed changed to an easement until after this suit was filed. Further, buyers had a right to know, prior to signing the purchase agreement, that the entire property bargained for was not available. Failure to convey title to the entire contracted property is just cause for terminating the contract.