How to Establish a Marketable Title in Real Estate Transactions

What is considered evidence of a marketable title in real estate?

All of the following would be considered evidence of a marketable title except:

A. An abstract of title with a legal opinion

B. A certificate of title by a real estate attorney

C. A certificate of title by real estate broker

D. A title commitment or title insurance policy

Answer:

The evidence of a marketable title would not include "a certificate of title by a real estate broker", as brokers are not typically authorized to issue such certificates. Option C is correct.

In real estate transactions, a marketable title is one that is free from defects or encumbrances that could affect the property's ownership or value. To establish a marketable title, various documents and legal instruments may be required.

An abstract of title with a legal opinion, a title commitment, or title insurance policy, and a certificate of title issued by a real estate attorney are commonly accepted as evidence of a marketable title. It is important for buyers and sellers to ensure that the title is clear and marketable before completing a real estate transaction.

However, a certificate of title issued by a real estate broker would not be considered reliable evidence of a marketable title, as brokers are not authorized to render legal opinions or certify the title's marketability.

By understanding what constitutes evidence of a marketable title and working with professionals such as real estate attorneys, buyers and sellers can ensure a smooth and secure real estate transaction.

← Should antilles refining stop making drums internally Understanding intermediate sanctions for tax exempt organizations →