Marketable Title

In depth

Marketable title is the standard most contracts require the seller to deliver. Defects making title unmarketable include open mortgages, judgment liens, recorded easements that significantly impair use, gaps in the chain, and adverse possession risks. Misconception: marketable title does not mean perfect title; minor easements and standard exceptions like utility easements are typically acceptable. Practically, FSBO and seller-financed transactions should specify in the contract that the seller will convey marketable title at closing. Title commitments help identify and address marketability issues before closing. If the seller cannot deliver marketable title, the buyer can usually terminate or sue for damages or specific performance. Marketable Record Title Acts in many states automatically clear stale claims older than 30 to 40 years.