Escrow & Title
What does it mean for title to be 'marketable'?
AThe property is listed for sale on the open market
BTitle that is free from reasonable doubt about its validity, allowing the property to be sold without legal challenge✓ Correct
CThe property is priced correctly for the current market
DTitle that has been guaranteed by a court
Explanation
Marketable title (merchantable title) is title that a reasonably prudent buyer would accept — it is free from undisclosed encumbrances, liens, or defects that would significantly affect value or allow legal challenge. Most purchase agreements require the seller to convey marketable title.
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