Closings glossary

Marketable title

Title a reasonable buyer would accept, free of defects that would expose that buyer to litigation. Most New York contracts require the seller to convey it at closing.

What is marketable title?

Quick Answer

Marketable title is title free of defects, encumbrances or doubts serious enough to expose a buyer to litigation or to make a reasonable buyer refuse it. New York contracts generally obligate the seller to deliver it, and title a company will insure is the practical test used at closing.

The full definition

Title a reasonable buyer would accept, free of defects that would expose that buyer to litigation. Most New York contracts require the seller to convey it at closing.

Where does marketable title come up in a New York City closing?

A Brooklyn contract lets the buyer cancel if title is unmarketable, and an unreleased 1998 mortgage is what pushes the seller to ask for an adjournment.

What else should you read before closing?

In the glossary

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