Understanding the Main Forms of Evidence for Marketable Title in Real Estate Transactions

Main Forms of Evidence for Marketable Title

When it comes to real estate transactions, demonstrating marketable title is crucial. Marketable title refers to a title that is free from any defects, liens, or other encumbrances that could affect the property's ownership. To prove marketable title to a buyer, owners typically rely on specific forms of evidence. Let's explore the main forms of evidence for marketable title:

Title Insurance Policy

Title insurance policy: This type of insurance provides protection to the buyer against any future claims that may arise regarding the property's title. It offers peace of mind by safeguarding the buyer's ownership rights in case of any unforeseen issues.

Attorney's Opinion of Abstract

An attorney's opinion of abstract: This is a legal document prepared by an attorney that outlines the property's ownership history. It summarizes key details, such as past transfers of ownership, any existing liens, and other relevant information that could impact the property's title.

Torrens Certificate

Torrens certificate: This certificate is issued by a government agency and serves as official confirmation of the property's ownership. It provides a clear record of ownership rights, making it an essential form of evidence to establish marketable title.

While these three forms—title insurance policy, attorney's opinion of abstract, and Torrens certificate—are crucial in demonstrating marketable title, a Broker's certificate is not considered one of the main forms. While a Broker's certificate may be necessary in certain real estate transactions to confirm a broker's authority, it does not hold the same weight as the aforementioned evidence in establishing marketable title.

By being aware of these main forms of evidence for marketable title, both buyers and sellers can navigate real estate transactions with confidence and ensure a smooth transfer of ownership.