How to Find a Marketable Title

Marketable title is a type of title that an individual has on a piece of property that has been determined to be reasonably free of defect. If the issue were brought up in court, a court would expect the buyer to accept the title as is because there have not been any reasons to believe that the title has any issues associated with it.

Title Search

The first part of determining whether a title is marketable is running a title search. Typically, when a buyer is ready to purchase a piece of property, they will hire a title company to perform a title search on the piece of property. The title company will look at the records concerning the title of the property and determine if there are any claims or holds on the property. Also, they will research if there were any other important defects that could affect the ownership of the property.

Title Insurance

Once the title company determines that there are no issues with the title, they will offer a title insurance policy to the purchaser of the property. Once the title company does this, they are taking on the risk and removing it from the buyer. The buyer then knows that they have a marketable title that is free of defect.

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