Escrow & TitleIntermediateAlaska Exam

Which of the following describes a marketable title in Alaska?

ATitle that is absolutely free of all defects and encumbrances, though outcomes can differ depending on circumstances
BTitle reasonably free of doubt that a prudent buyer would accept without requiring an extraordinary legal remedyCorrect
CTitle that has been warranted by the seller for 10 years
DTitle that is insured by the state government

Why Title reasonably free of doubt that a prudent buyer would accept without requiring an extraordinary legal remedy Is Correct

Answer B: Title reasonably free of doubt that a prudent buyer would accept without requiring an extraordinary legal remedy

Marketable title (merchantable title) is title that a reasonable, well-informed buyer would accept — not necessarily perfect, but free of material defects that would expose the buyer to litigation or significant risk.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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