In real estate, marketable title refers to ownership of property that is free from significant defects and can be readily sold to a reasonably prudent purchaser. Such a purchaser is assumed to be aware of the relevant facts and their legal implications, including any liens or encumbrances affecting the property.
A marketable title does not require absolute perfection, but it must be clear enough to avoid a reasonable risk of litigation or dispute. Minor defects that do not materially affect value or use may be acceptable, while substantial liens, unresolved claims, or restrictions can render a title unmarketable and prevent or delay a sale.
