Marketable title

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.

Which related terms should you know?

These are the terms that come up alongside marketable title in the same file.

Cloud on title

Any claim or encumbrance that may impair the owner's title. New York owners resolve the serious ones through a quiet title action under RPAPL Article 15.

Title insurance

Insurance against loss from title defects that existed before the policy date. New York premiums come from a filed rate schedule, so the figure is calculated rather than negotiated.

Encumbrance

Any interest in the property held by someone other than the owner, whether monetary such as a mortgage or lien, or non-monetary such as an easement or a covenant.

Title exception

A matter the title policy does not insure against, listed on Schedule B. Some exceptions are removed before closing and others are simply accepted by the buyer.

Chain of title

The sequence of recorded conveyances of a property, from an earlier known owner to the present one. Gaps and defective links in the chain are what a title search is designed to find.

What else should you read before closing?