re: Real Estate: What are my legal obligations if there are title issues?

Does the seller have title insurance? If so, have they made a claim? Depending on the defect(s), the title insurance company may agree to insure over the defects to allow the sale to go through, meaning that they wont take exception to the defect in the policy and should it ever become an issue, you make a claim and theyll fix it.

As to getting out of the sale, I agree with whoever said to just let the contract expire.