Kiritsis & Associates

 

What is marketable title?

Jul 14, 2021

Kiritsis Law Group 212 922 0005

By: John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M


Generally, it refers to a type of title which has no defects or claims, and which is regarded as readily accepted with no fair reasonable doubt.  Determination that a title is a marketable title could influence real estate contract disputes, because courts of equity in many jurisdictions view  a marketable title as defect-free and thus a buyer is legally forced to accept it. In some jurisdictions, a deed with no warranty of title may under the property law merger doctrine, supersede conflicting initial contract language. It is important to note that zoning restrictions and many government land use regulations, usually will not render a title unmarketable. Courts in some jurisdictions may construe a real estate contract as requiring a vendor (the property’s seller) with an implied undertaking for vendor to get marketable title; however, it may in some cases be possible, that conflicting, contradictory and/or qualifying language in the contract eviscerate this vendor’s obligation. 

 

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