What does "marketable title" mean?

Marketable title refers to a property title that is free from significant defects and can be legally and easily transferred to another party. This means that there are no liens, encumbrances, or legal issues that could hinder the new owner's ability to claim full ownership or use of the property. Essentially, it assures potential buyers and lenders that the title is clear and won't lead to disputes after the transaction is completed.

A title that is easily transferable, while a component of marketability, does not fully capture the concept since a title might be easily transferable but still have defects. Similarly, a title that includes all property limits and a title endorsed by an attorney might provide certain assurances, but they do not address the key aspect of being free from significant defects. Thus, defining a marketable title primarily hinges on its absence of defects, making it a secure and viable option for conveyance.