Marketable title is best described as a title that is free from what?

• A. Free from risk of litigation
• B. Free from all defects
• C. Absolute perfection
• D. No encumbrances

Answer: (A)

Marketable title means the buyer can rely on owning the property free from serious doubt or dispute about who owns it or what claims attach to it. The key is absence of unresolved issues that could lead to litigation or cloud title in the near future. If there’s a pending lawsuit, a claim, or any serious dispute that could threaten the owner’s rights, the title wouldn’t be marketable because a reasonable buyer wouldn’t want to risk future trouble.

That’s why the option describing it as free from risk of litigation is the best fit. A title can still have minor defects or encumbrances that are known and manageable (and may still be insurable or removable), so the standard isn’t “free from all defects” or “no encumbrances” or “absolute perfection.”