Marketable Title Law and Legal Definition

Marketable title refers to holding ownership of property reasonably free of defects and liens that would subject it to a lawsuit. It is a good and clear title, without adverse claims against it that would cloud the title. Marketable title allows the owner to sell the property at fair market value without objection from the buyer.

To ensure marketable title, a title search can be performed before purchasing real property, to investigate the existence of encumbrances such as mortgages, real estate taxes, liens for sewers, roadways, sidewalks, and other municipal improvements, federal taxes, government claims, legal judgments, foreclosures, condemnations, covenants, and easements.