How to Establish a Marketable Title in Real Estate Transactions
What is considered evidence of a marketable title in real estate?
All of the following would be considered evidence of a marketable title except:
A. An abstract of title with a legal opinion
B. A certificate of title by a real estate attorney
C. A certificate of title by real estate broker
D. A title commitment or title insurance policy
Answer:
The evidence of a marketable title would not include "a certificate of title by a real estate broker", as brokers are not typically authorized to issue such certificates. Option C is correct.
In real estate transactions, a marketable title is one that is free from defects or encumbrances that could affect the property's ownership or value. To establish a marketable title, various documents and legal instruments may be required.
An abstract of title with a legal opinion, a title commitment, or title insurance policy, and a certificate of title issued by a real estate attorney are commonly accepted as evidence of a marketable title. It is important for buyers and sellers to ensure that the title is clear and marketable before completing a real estate transaction.
However, a certificate of title issued by a real estate broker would not be considered reliable evidence of a marketable title, as brokers are not authorized to render legal opinions or certify the title's marketability.
By understanding what constitutes evidence of a marketable title and working with professionals such as real estate attorneys, buyers and sellers can ensure a smooth and secure real estate transaction.