Escrow & TitleIntermediateDelaware Exam

What is Delaware's 'Marketable Title Act' and how does it simplify title searches?

AA law that automatically makes every single Delaware title marketable after a fixed 10-year statutory period, in most cases

BA Delaware law establishing that a 40-year or longer unbroken chain of title from a root of title creates marketable titleCorrect

CA state law requiring all Delaware properties to be surveyed before sale

DA law guaranteeing that all Delaware properties have clear title

Why A Delaware law establishing that a 40-year or longer unbroken chain of title from a root of title creates marketable title Is Correct

Answer B: A Delaware law establishing that a 40-year or longer unbroken chain of title from a root of title creates marketable title

Delaware's Marketable Title Act (similar to other states' acts) simplifies title searches by establishing that a recorded chain of title extending back at least 40 years from a valid root of title creates marketable title — without having to trace records back to the original land grant. Claims based on events more than 40 years old that are not re-recorded may be extinguished, making searches more efficient.

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

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

People Also Study

Key Terms to Know

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

Abstract of Title

A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.

Transfer Tax

A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.

Short Sale

A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.

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