What Is a Marketable Title?

Marketable title is a legal term to describe the condition of the title to be transferred in a real estate transaction. In simple terms, it means that the title is free of encumbrances and that a legal action brought against you will more than likely be unsuccessful. It’s referred to as marketable, because there are no liens or clouds on the title, and buyers can reasonably expect to own the property without concerns of litigation over title.

How to Determine Marketable Title

A real estate attorney or you can conduct a property title search to ensure a proper chain of title transfer to the current owner. You’ll also be able to check for liens on the title and mortgages that encumber the title. Records are public, and you may be able to search them online. Check the city or town’s website where the property is located.

Legal Remedies

If you sign a purchase agreement for property, but the seller is not able to provide marketable title, then you can void the contract and get a refund of any monies paid. Even if the contract doesn’t mention marketable title, it’s implied in all real estate contracts.

No matter what guarantees the seller makes, it’s a good idea to do a property title search. Then, there can be no doubt that the seller can deliver a marketable title.

blog comments powered by Disqus