To be marketable, title must be

To be marketable, title must be

• A. Registered in Torrens.
• B. Free of undisclosed defects and encumbrances.
• C. Abstracted by an attorney.
• D. Guaranteed by a title certificate.

Answer: (B)

Marketable title means the owner can transfer ownership to a buyer without the risk of future claims or litigation. To be marketable, the title must be free of undisclosed defects and encumbrances that could affect ownership or use of the property. If there are hidden defects or burdens like liens, easements, or other claims that aren’t resolved or disclosed, a prudent buyer could face unexpected problems after purchase, making the title unmarketable. The other options describe ways title evidence or guarantees might exist, but they aren’t what determines marketability; the essential idea is the absence of undisclosed defects and encumbrances.

Marketable title means the owner can transfer ownership to a buyer without the risk of future claims or litigation. To be marketable, the title must be free of undisclosed defects and encumbrances that could affect ownership or use of the property. If there are hidden defects or burdens like liens, easements, or other claims that aren’t resolved or disclosed, a prudent buyer could face unexpected problems after purchase, making the title unmarketable. The other options describe ways title evidence or guarantees might exist, but they aren’t what determines marketability; the essential idea is the absence of undisclosed defects and encumbrances.