Contracts

The TREC One to Four Family Residential Contract includes a paragraph on 'title' that requires the seller to provide:

AA guarantee that the title is perfect
BMarketable title at closing, free of undisclosed encumbrances except those listed in the contract✓ Correct
CAn owner's title insurance policy at the buyer's expense
DA title opinion from a licensed attorney

Explanation

TREC's standard contract requires the seller to deliver marketable title at closing, free of any undisclosed liens, encumbrances, or adverse claims except as disclosed in the contract. Marketable title is title that a reasonable buyer would accept—not perfect, but free of significant clouds or disputes.

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