What is characterized as good or clear title, free from litigation risks associated with defects?

Marketable title refers to a property title that is free from significant defects, encumbrances, and litigation risks, making it suitable for sale or transfer. A marketable title assures potential buyers that they will not face legal challenges or uncertainties regarding ownership, which is essential in real estate transactions.

This concept is vital because when purchasing property, buyers expect to acquire clear ownership, allowing them to use or sell the property without the threat of future disputes. If a title is not marketable, buyers may hesitate to complete a transaction or offer a lower price due to the potential costs and risks associated with resolving title defects.

Other options, such as leasehold and fee simple forms, define different types of ownership but do not inherently imply the absence of defects or risks. Leasehold refers to the temporary ownership of property under a lease agreement, while fee simple determinable and fee simple on condition subsequent describe specific types of freehold estates that can come with conditions or limitations, rather than directly addressing the clarity of title or its marketability.