What is the seller's duty regarding marketable title?

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Prepare for the Real Estate Transactions Exam with study materials and multiple choice questions with comprehensive explanations. Enhance your real estate knowledge and boost your confidence for exam day!

The correct answer emphasizes the important expectation in real estate transactions that sellers have an implied duty to provide a marketable title. Marketable title refers to a title that is free from significant defects or clouds that would impair the buyer’s ability to enjoy and control the property. This duty is implied in most residential sales contracts, indicating that the seller must deliver a title that is legally sufficient to be sold without issues that could deter a reasonable buyer.

This obligation to provide a marketable title protects the buyer by ensuring that they can take full ownership of the property without facing future legal disputes or claims. If a title is found to be unmarketable due to issues such as outstanding liens or easements that were not disclosed, the buyer may have grounds for a claim against the seller.

In contrast, other options represent misunderstandings about the seller's obligations. The seller's duty is not about providing any title that the buyer desires, nor is there a scenario where the seller is completely free from the obligation to provide a marketable title. Similarly, while disclosing known problems is important, it does not replace the essential duty of delivering marketable title, which is more comprehensive in its implications for the sale transaction.

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