What is typically necessary for a seller to fulfill their obligation regarding marketable title?

For a seller to fulfill their obligation regarding marketable title, it is crucial that the title is free of known encumbrances. Marketable title is a legal term that means the title to the property is clear and can be legally transferred without issues that could affect the buyer's ownership. This assurance provides confidence to the buyer that there are no claims, liens, or other legal implications that would impede their ability to fully enjoy and utilize the property.

In real estate transactions, it is standard practice for sellers to verify and disclose not just the existence of encumbrances but also any known issues that may affect the property. By ensuring the title is free of known encumbrances, the seller protects both themselves and the buyer from future disputes or legal complications related to ownership. This aligns with the buyer's expectation of a clear title upon purchase.

Other options, such as providing oral assurances or granting exclusive rights to use the property, do not legally establish marketable title. Similarly, while obtaining a title insurance policy is beneficial as it protects against unforeseen issues, it does not substitute the seller's responsibility to ensure the title is clear of known encumbrances before the transaction.