1. Marketable title means title that is:
Answer & explanation
Answer: D. Marketable title is reasonably free from defects and insurable - not necessarily perfect.
property
marketable title
Marketable title is title that is reasonably free from defects, liens, and serious doubts, so that a reasonable, informed buyer would accept it without fear of litigation. Most purchase contracts require the seller to deliver marketable title at closing. If problems are found, the seller usually has a chance to cure them, and the buyer may cancel if they are not resolved.
- Exam tip
- Marketable title does not mean perfect title with no encumbrances; it means free of reasonable doubt. Some encumbrances, like normal utility easements, may be acceptable.
- Example
- A title search reveals an old judgment lien on the seller. Until the lien is paid and released, the seller cannot deliver marketable title.
Related terms & state variants
Sources
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Last verified: 2026-10-23