What makes title marketable?

A title is considered marketable when it is free from any claims or encumbrances that could affect the buyer's ownership rights. This includes being free from liens—financial claims against the property that could lead to foreclosure or other legal actions—as well as any serious defects that could impair the property's title. A marketable title ensures that the buyer can take possession and use the property without worrying about legal complications that might arise from previous ownership or third-party claims.

While being free from environmental hazards, available for immediate possession, and listed at a low sale price may contribute to the appeal of a property, they do not fundamentally define or guarantee the marketability of its title. Environmental hazards pertain more to the condition of the property than to the title itself. Immediate possession deals with when the buyer can occupy the property, which is separate from the legal title. Similarly, a low sale price might attract buyers but does not affect the legal status or marketability of the title. Therefore, the strongest and most direct reason for a title being marketable is its freedom from liens, encumbrances, and serious defects.