What refers to title to real property that is free of reasonable doubt?

Prepare for the Michigan State Title Insurance Exam. Enhance your study with flashcards and multiple-choice questions. Understand questions with detailed hints and explanations. Ace your exam!

The correct choice regarding title to real property that is free of reasonable doubt is marketable title. This term is used in real estate to indicate that the title being transferred is clear of significant defects and can be freely sold, allowing the buyer to take ownership without concerns of legal disputes or claims that might arise. A marketable title is one that a reasonable buyer would accept and is typically demonstrated to be free from encumbrances, defects, or other issues that could complicate ownership.

Clear title, though often used synonymously with marketable title, typically implies that there are no liens or legal issues. However, the term marketable title encompasses not just the absence of legal clouds but also ensures that the property can be sold or financed without impediments. Factors such as the public record and the extent to which an interested buyer may enforce their ownership rights contribute to the definition of a marketable title.

Secure title and valid title are not industry standard terms that capture the essence of property ownership in a way that is recognized broadly in real estate transactions. Secure title might imply certain protections but doesn’t directly address the certainty aspect, while valid title could refer to a title that has been legally established but may still have issues that render it less than marketable.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy