Marketable Title

title to a piece of real estate that is reasonably free from risk of litigation over possible defects, and while it may not be perfect, it is free from plausible or reasonable objections, and is one that a court of law would order the buyer to accept. A seller under a contract of sale is required to deliver marketable title at final closing; this requirement is implicit in law and does not need to be stated in the contract. Usually the property buyer will engage a title insurance company to ensure that the seller has clear title to the real estate before entering into a purchase contract. This search generally is not ordered until financing has been secured. Once the title company has researched the history of ownership of the property and feels sure that the seller owns it, it will issue a title insurance policy. The seller is thus assured that he has a marketable title, which allows him to transfer ownership to the buyer.
See also bad title; Cloud on Title.

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