What is meant by "marketable title"?

Marketable title refers to a title that is free of significant defects and can be sold without the risk of disputes or challenges. In the context of real estate, having a marketable title means that the property is legally transferable and there are no outstanding claims or liens that would prevent the owner from selling the property or that would create uncertainty for the buyer. This is crucial for ensuring that the buyer can take ownership without concerns over future legal issues or ownership disputes.

A title can be considered marketable if it is clear and free from issues such as unresolved liens, easements, or conflicts over ownership. This clarity and reliability provide assurance to potential buyers that they will be able to enjoy and use the property without concern for hidden legal problems. Therefore, the definition captures the essence of what constitutes a marketable title within real estate transactions, emphasizing the importance of a clean and defensible title in facilitating smooth property transfers.