Escrow & Title
In Colorado, a 'marketable title' means:
AA. A title that is free of all liens
BB. A title reasonably free from doubt — one that a prudent buyer would accept, and which would not expose the buyer to litigation✓ Correct
CC. A title that has been insured by a title company
DD. A title that is guaranteed to be perfect
Explanation
Marketable title is title that a reasonable, prudent buyer would accept — it is free from significant doubt or the likelihood of litigation. It does not need to be perfect title, but it should be reasonably clear of undisclosed encumbrances or defects. Real estate contracts typically require the seller to deliver marketable title at closing.
Related Colorado Escrow & Title Questions
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