Contract law 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.

The concept of marketability of title refers to ownership of real estate. Under law, titles are evidence of ownership. Selling real estate (land and the property attached to it) involves transferring its title. A marketable title is one that can be transferred to a new owner without the likelihood that claims will be made on it by another party.

Marketable title ( real estate) is a title that a court of equity considers to be so free from defect that it will legally force its acceptance by a buyer. Marketable title does not assume that absolute absence of defect, but rather a title that a prudent, educated buyer in the reasonable course of business would accept.

In order for the title to be marketable, the property should be “reasonably free from doubts” about three areas: that the seller owns the complete property, that the title has no clouds or encumbrances, and that no doubts exists about whether or not the title is clouded or encumbered.,×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 is one that can be transferred to a new owner without the likelihood that claims will be made on it by another party. In order for the title to be marketable, the property should be “reasonably free from doubts” about three areas: that the seller owns the complete property, that the title has no clouds or encumbrances, and that no doubts exists about whether or not the title is clouded or encumbered.