How is marketability of a title determined?

Marketability of a title is primarily determined by its legal status and the absence of defects that could impede transfer to a buyer. This is typically assessed through thorough investigation of public records, title reports, and other documentation to identify issues such as liens, encumbrances, or zoning restrictions.

While it's true that marketability could be challenged in court, particularly if disputes arise over ownership or related rights, the concept of marketability itself goes beyond what is merely determined in a courtroom. It involves understanding the conditions of the title based on legal facts and relevant documentation which can influence whether a buyer will purchase the property.

Unlike market evaluations carried out by appraisals or agreements made between parties, which do not legally assess the title's validity, nor is it merely a matter of public opinion, the legal determination of marketability involves established criteria and practices in property law, underscoring the importance of a clear and marketable title in real estate transactions.