Escrow & Title
A 'marketable title' in Georgia means:
AA. A title with no encumbrances whatsoever
BB. A title free from reasonable doubt that a prudent buyer would accept✓ Correct
CC. A title backed by title insurance
DD. A title that has been examined by an attorney in the last 6 months
Explanation
Marketable title is one that a reasonable, prudent buyer would accept — free from serious defects, claims, or encumbrances that would interfere with use or the ability to sell. Minor, non-harmful encumbrances may not affect marketability.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
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