Marketable Title

Definition: Marketable title is title reasonably free from doubt or defects that would expose a purchaser to a substantial ownership dispute or risk of litigation.

Example

Before closing, the parties resolve a competing ownership claim so the seller can meet the contract’s title requirements.

Keep the distinction clear

Marketable does not mean the property will sell quickly or is in good physical condition. Title quality, market value, and an insurance company’s coverage decision are different questions.

Related terms

Cloud on Title · Title Search · Title Insurance

Keep studying

Deeds, Abstracts, Title Opinions, and Title Insurance

References: Cornell LII: marketable title

Pronunciation (US): MAR-kuh-tuh-buhl TYE-tuhl (capitals show stress)

Pronunciation reference: Merriam-Webster