Escrow & Title
Marketable title means title that is:
AFree of all liens and encumbrances
BReasonably free from doubt and valid defects that a reasonable buyer would object to✓ Correct
CGuaranteed by the state of Tennessee
DInsured by a title insurance company
Explanation
Marketable title (merchantable title) is title that is reasonably free from doubt and from defects a reasonable and prudent buyer would object to. It does not need to be perfectly free of all encumbrances — only free of those that would create significant legal risk.
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