What defines "marketable title" in real estate transactions?

Marketable title is defined as a title that is free from significant defects. This means that the title should not have any issues that would impede the property's transferability or make it unappealing to potential buyers. A marketable title provides assurance to buyers and lenders that the property is clear of any encumbrances, such as liens or disputes, that could detract from its value or complicate its sale.

In a real estate transaction, having a marketable title is crucial because it facilitates smoother transactions and minimizes the risk of legal issues arising in the future. Potential buyers can proceed with confidence, knowing that their ownership rights are secure and that they will have no legal challenges related to the title. Thus, a title free from significant defects is paramount for ensuring marketability and protecting the interests of stakeholders involved in the property transaction.