Share

When you buy a home, you expect it to be free of any liens or claims and that you can legally do what you like with the property. A marketable title is a title that is transferred to a new owner without the risk of an outside party making claims on it. This outside party could be relatives of the former owner or a lender.

Make Sure It’s Free of Defects

A marketable title is a title that is “free from reasonable doubt and such as reasonably well informed and intelligent purchasers, exercising ordinary business caution, would be willing to accept.” So when you purchase a property, you expect that it’s free of claims and you’ll be able to “hold it in peace.” If a title has a defect on it, such as an outstanding lien, it is not considered marketable.

A marketable title is free from defects like:

  • Poor recording of ownership
  • Previous liens or encumbrances
  • Problems with wording in real estate documents

Have Evidence of a Marketable Title

Having evidence of a good, marketable title will help prevent an outside party from making any claims on the property you just purchased. Evidence of a marketable title includes:

These documents identify the past owners and history of the home and are often based on professional examinations by a real estate lawyer of property records. Having a warranty of title is another way to ensure that the title is good.

A warranty of title is a good way to make sure a title is good as a seller cannot sell a home with a warranty of title if it has claims on it or they cannot legally sell the home. If there are any disputes over the title, you can get a quiet tile action, which is a lawsuit to determine who has claim over a property.

Find a Loan Officer in St. Louis Today

Share