GOOD AND MERCHANTABLE TITLE


In real estate, the term “good and marketable title” refers to a title that is free from any defects that would affect the market value of the property and is reasonably certain not to be called into question in the future such as to subject the purchaser to the hazard of litigation.

A title that meets these criteria is considered “good and marketable” or “good and merchantable”.

A marketable title is one that a reasonably prudent person with knowledge of all of the applicable facts and law would be willing to accept. It must be reasonably free from doubts that would affect the market value of the property and must be reasonably certain not to be called into question in the future. A good title, on the other hand, means title that is unassailable.

It’s important to note that while having a good and marketable title does relate to value, they are not the same. For example, if you have title via 18 years of adverse possession but haven’t obtained a judicial decree quieting title, then your title may be good but not marketable.

In summary, a good and marketable title is a title that is free from defects that would affect the market value of the property and is reasonably certain not to be called into question in the future such as to subject the purchaser to the hazard of litigation. A marketable title is one that a reasonably prudent person with knowledge of all of the applicable facts and law would be willing to accept, while a good title means title that is unassailable.


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