Real estate title glossary
What is marketable title?
Also called: merchantable title, good title
Definition
Marketable title is title free from reasonable doubt, one a prudent buyer would accept without fear of litigation over defects or encumbrances.
Purchase contracts usually require the seller to deliver marketable or insurable title. Open mortgages, unreleased liens, gaps in the chain or boundary disputes can make title unmarketable until cured.
How it shows up in a title search
A title search is how marketability is tested: it surfaces the recorded items that have to be released, paid or explained before closing.
Guides that go deeper
- Cloud on Title: Meaning, Examples and How to Clear OneWhat a cloud on title means in real estate, common examples a title search finds, and how each is cleared: release, corrective deed, lapse or quiet title.
- Title Search vs Title Insurance: What Each Actually CoversA title search reports what is recorded. Title insurance pays if that conclusion is wrong. What each covers, who needs which, and when a search is enough.
- Quiet Title Action: What It Is, When It Is Used and How It WorksA quiet title action is a lawsuit that settles who owns land. When it is used (clouds, adverse claims, lost heirs), the steps, and what Florida and Arizona law say.
Related terms
Source: Legal Information Institute, Wex: marketable title. Plain-English summary of general US usage; state law varies, and this is not legal advice.