Series 2 · Real estate and liens

The Lien Two Days Before Closing

Q48Four modelsSix blind pairingsMaterial-outcome scoring

Why this result mattered

Functional tie

The principal comparison placed Qwen 3.8 and Claude under concealed A/B labels.

Both answers direct North Quay to give notice by Thursday, honor the five-business-day cure period, reject the unsupported $300,000 holdback and indemnity, and close only after a current payoff supports payment/release or a 125% insurer-approved escrow yielding exception-free policies and lender funding. Both preserve termination, further-extension, waiver, and specific-performance options without demonstrating a materially different outcome.

Benchmark materials

Prompt and sealed key

The key is an audit reference. It was not shown to the contestant systems and did not determine the comparative verdict.

Read the original matter prompt

Question 48: The Lien Two Days Before Closing

Your role

You represent North Quay Hospitality, the buyer of a hotel property in the fictional State of Dorran. Closing is scheduled in two days. A title search has disclosed a judgment lien against the seller, but the current payoff amount is not in the file.

Governing law

Assume the following Dorran rules and contract terms apply:

  1. The seller must convey marketable title free of monetary liens other than those the buyer expressly accepts.

  2. The buyer must give written notice of a title defect no later than one business day before closing. Timely notice extends closing for five business days to permit cure.

  3. During the cure period, the seller may satisfy and release the lien, obtain a binding release for delivery at closing, or arrange an insurer-approved escrow that permits an unconditional policy without exception for the lien.

  4. The title insurer may insure over a judgment lien only after receiving a current written payoff and either confirmed payment or an escrow equal to 125 percent of the payoff. The insurer may not estimate the payoff from the original judgment alone.

  5. The buyer's lender will not fund if the owner's or lender's policy excepts the lien. A promise by the seller to handle the lien after closing is insufficient.

  6. If the seller fails to cure by the extended date, the buyer may terminate and recover the deposit, waive the defect, or agree to a further written extension. The buyer is not required to accept unmarketable title.

  7. The buyer may negotiate a purchase-price credit or escrow, but a private indemnity does not itself remove the title defect or satisfy the lender.

  8. A party seeking specific performance must remain ready, willing, and able to close on the contract terms, including giving timely defect notice and honoring a valid cure period.

Facts

North Quay agreed to buy the Halberd Hotel for $6.4 million and deposited $320,000. Closing is Friday. Today is Wednesday.

The title commitment issued this morning lists a judgment lien entered four years ago against the seller. The original judgment was $420,000 and accrues simple interest at 8 percent, but the docket shows several unidentified credits. The title company has no current payoff statement and will not calculate one from the docket. The supplied record does not state the remaining principal, accrued interest after credits, collection costs, or the judgment creditor's release conditions.

The seller says the lien is "probably under $300,000" and offers a general indemnity. It has not contacted the creditor. The title insurer will insure over only under rule 4. North Quay's lender confirms that it will not fund with the lien exception.

The purchase agreement permits the five-business-day cure extension. The seller has enough sale proceeds to pay a lien up to $700,000. North Quay still wants the property but must open for a convention in six weeks. A delay beyond the five-day cure period could affect renovation scheduling.

The seller asks North Quay to close Friday, leave $300,000 with the seller's lawyer, and "true it up later." No creditor consent or insurer approval supports that figure.

Assignment

Provide an ordered closing plan addressing:

  • The written defect notice and its deadline.
  • The five-business-day cure extension.
  • The exact payoff information that must be obtained.
  • Cure by payment, release, insurer-approved escrow, price credit, or indemnity.
  • Why the proposed $300,000 holdback is or is not sufficient on the present record.
  • Lender and title-insurer conditions.
  • North Quay's termination, waiver, extension, and specific-performance positions.
  • The sequence for the next seven business days.
  • The concrete conditions under which North Quay should close, extend, or terminate.


Read the sealed key

Q48 key (Lien Before Closing)

  1. Send written defect notice today, no later than Thursday, to invoke the five-business-day cure period and preserve readiness to close. Missed: North Quay waives the contractual cure machinery or weakens specific performance.
  2. Obtain a current creditor payoff stating principal, credited payments, accrued interest, costs, payment instructions, and release conditions. The original $420,000 and seller estimate are insufficient. Missed: the transaction prices an unknown lien by guess.
  3. Acceptable cure is payment and recordable release, binding closing release, or insurer-approved escrow equal to 125 percent of the current payoff. A price credit or indemnity works only if title and lender conditions are separately satisfied. Missed: private allocation is confused with marketable title.
  4. The proposed $300,000 holdback is unsupported because no payoff exists, no 125 percent calculation can be made, and neither creditor nor insurer approved it. Do not close on that term. Missed: the buyer funds into a lien exception.
  5. Use the five-day extension, require seller contact with the creditor immediately, coordinate title and lender, and set a hard cure decision before the extended close. Missed: two days of panic replace the bargained cure period.
  6. Close only with an unconditional policy and funded release or compliant escrow. If uncured, negotiate a further written extension if convention timing permits or terminate for the $320,000 return; do not waive absent a deliberate, financed decision. Missed: the deposit or opening schedule is put at risk without title protection.
Blind evaluation record

Direct judge report

The report below is preserved from the Qwen 3.8 versus Claude verdict record.

Read the preserved judge report
TIE, FUNCTIONALLY EQUIVALENT.

Basis. Both answers direct North Quay to give notice by Thursday, honor the five-business-day cure period, reject the unsupported $300,000 holdback and indemnity, and close only after a current payoff supports payment/release or a 125% insurer-approved escrow yielding exception-free policies and lender funding. Both preserve termination, further-extension, waiver, and specific-performance options without demonstrating a materially different outcome.

[B] rejected: the cure period might run five business days from the notice date — cited Rule 2 instead extends the Friday closing for five business days.
[A] rejected: untimely notice necessarily forces an election between defective closing and buyer default — record lacks those contractual consequences.

Failed candidates. B’s alternative cure-period calculation — different conduct failed because B still uses the following Friday as the operative extended date.
Failed candidates. A’s consequences of untimely notice — different conduct failed because both answers require notice today and no later than Thursday.
Failed candidates. Different thresholds for a further extension — concrete consequence failed because the record does not establish the seller’s cure status at the extended deadline or whether extension rather than termination would benefit North Quay.
Failed candidates. A’s illustrative no-credit payoff and per-diem calculation — likelihood failed because neither answer permits action based on that estimate; both require a current creditor payoff.
Failed candidates. A’s price-reduction proposal and reservation of specific performance after termination — record support failed because no seller response or Dorran rule establishing a different remedial consequence is supplied.

Hard stop. The sentence cannot be completed with a concrete, record-supported consequence.
Complete comparison record

All six pairings

Every pair of the four model answers was judged independently under the same evaluation instrument.

Open the six head-to-head results
PairingResultWhy it matteredRecord
Qwen 3.8 27B vs Claude Opus 5Functional tieBoth answers direct North Quay to give notice by Thursday, honor the five-business-day cure period, reject the unsupported $300,000 holdback and indemnity, and close only after a current payoff supports payment/release or a 125% insurer-approved escrow yielding exception-free policies and lender funding.Judge record
Qwen 3.8 27B vs DeepSeek V4-Flash-0731Functional tieBoth readers would timely notify the seller, invoke the cure extension, reject the unsupported $300,000 holdback, obtain a current creditor payoff, and close only after payment/release or an approved 125% escrow permits clean title policies and lender funding.Judge record
Qwen 3.8 27B vs Qwen 3.5 27BFunctional tieAfter ordinary verification, both readers timely notify the seller, honor the full five-business-day cure period, reject the unsupported $300,000 holdback, and close only with clean title policies and lender funding.Judge record
DeepSeek V4-Flash-0731 vs Claude Opus 5Functional tieBoth answers direct North Quay to give notice by Thursday, use the five-business-day cure period, obtain a current creditor payoff, reject the unsupported holdback and indemnity, and close only after an approved cure removes the lien exception and permits lender funding.Judge record
DeepSeek V4-Flash-0731 vs Qwen 3.5 27BFunctional tieAfter ordinary verification, both readers timely object Wednesday, honor the full five-business-day cure period, require a current creditor payoff, reject the unsupported $300,000 holdback and indemnity, and close only upon release or a 125% insurer-approved escrow producing exception-free policies and…Judge record
Qwen 3.5 27B vs Claude Opus 5Functional tieAfter ordinary verification corrects Answer A’s facial calendar error and rejects its premature-termination language, both readers timely object, honor the cure period through Friday of the following week, demand a current written payoff, and close only upon release or an insurer-approved 125% escrow…Judge record
Rejected-point diagnostic

Judge-attributed rejected points for this matter across all six pairings:

Qwen 3.8 27B2
DeepSeek V4-Flash-07313
Claude Opus 53
Qwen 3.5 27B8

This is a review-burden diagnostic, not a universal hallucination measure.

Available reasoning traces