Marketable title is a concept in property law referring to a title free from any claims or disputes about the ownership, or from any threat of litigation. When a seller is selling property to a buyer, an implied promise is that the seller will deliver marketable title to the buyer. A marketable title may also be referred to as good title, merchantable title, or clear title.
Various encumbrances upon a piece of land can make the title unmarketable including mortgages, adverse possession claims, and violations of zoning laws. To guard against the possibility of issues in title, many home buyers purchase title insurance, although the protection offered by these policies is limited.
[Last updated in July of 2023 by the Wex Definitions Team]