Title need not be perfect but must be free of defects that would expose the buyer to litigation or reasonable doubt about ownership. Contracts typically require marketable title as a closing condition.
Marketable Title Acts extinguish stale interests in many states.
Alternative Names:
Merchantable Title|Good and Marketable Title
Why it Matters?
Marketable Title Acts extinguish ancient interests not re-recorded within a defined root period, typically thirty to forty years, which cures many defects that would otherwise require quiet title litigation. Checking whether the act reaches a particular defect is faster and cheaper than curative litigation. Contracts may also specify insurable title rather than marketable title, which is a lower standard satisfied by a title company's willingness to insure over the defect.
Frequently Confused with
Related terms
Frequently asked questions
What does a Marketable Title Act do?
How does insurable title differ?
