Tagged : Marketable Titles

In the real estate business, a marketable title is considered entirely free from defect, therefore deemed agreeable to be accepted by any potential buyer. Unlike a merchantable title, which is considered to be reasonably free of problems or defects, a marketable title is thought to be relatively perfect.

In most real estate transactions, there is an assumption of marketable title unless there is specific wording in the contract to indicate otherwise. Real estate contracts typically state that in the event the seller cannot produce a clear and marketable title, the buyer can back out of the deal and recapture any deposits they may have paid. As a seller does not have to deliver a clear and marketable title on the date of closing, the seller can…