How is "marketable title" defined?

"Marketable title" is defined as a title that can be easily sold or mortgaged without significant defects. This concept is crucial in real estate transactions, as it assures the buyer that the property is free from irregularities in ownership that could hamper the sale or transfer of the property. A marketable title provides a clear chain of ownership, meaning that any potential legal issues have been resolved and the title is not encumbered by unsatisfied liens, claims, or legal disputes.

The presence of a marketable title gives confidence to both buyers and lenders, ensuring that the property can be financed and that the new owner will have the legal right to use and enjoy the property without fear of unexpected legal challenges.