An implied promise in a contract when a seller is selling land to a buyer is that the seller will deliver marketable title to the buyer at the date of the closing. A title to a piece of land is considered unmarketable if there are encumbrances on the land, such as mortgages, unless the buyer waives them.

What makes a property marketable?

First a legal definition: Marketable title (real estate) is a title that considers to be free from defect. Marketable title does not assume the absolute absence of defect, but rather a title that a prudent, educated buyer in the reasonable course of business would accept.

What is evidence of marketable title?

The best evidence of marketable title is a lender`s or owner`s title insurance policy. But when a title insurance company is willing to insure the title, the buyer or lender feels confident the title is marketable.