What can affect the marketability of real property?

The marketability of real property can be significantly impacted by encumbrances or legal defects in the title. When a title has encumbrances, such as liens, mortgages, easements, or other obligations, it can create complications in the ownership and transfer of the property. These issues can deter potential buyers, as they may face legal challenges or additional costs associated with resolving these encumbrances. A clear title is essential for ensuring that a buyer can acquire full ownership without the risk of future claims or obligations. As a result, this makes option B the critical factor affecting the marketability of real property.

While the physical condition of the property, personal preferences of buyers, and the location of the property can indeed influence marketability, they do so in ways that may not directly relate to the legal standing of the title. The presence of encumbrances is a more definitive issue that can legally prevent a smooth sale or transfer, underscoring its importance in determining a property's marketability.