Escrow & Title

In South Dakota, 'marketable title' in a real estate transaction means:

AThe property has no existing mortgage
BTitle is free from reasonable doubts or defects that could subject the buyer to litigation✓ Correct
CThe property is priced at or below market value
DTitle insurance has been issued on the property

Explanation

Marketable title is title that is reasonably free from doubt and defects, such that a reasonable buyer would accept it without fear of litigation. It does not mean perfect title, but title that is good enough to be sold in the marketplace.

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