marketable title
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 reviewed in July of 2023 by the Wex Definitions Team ]
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