What does the term 'marketable title' imply?

The term 'marketable title' refers to a title that is free from defects and can be easily transferred to another party. This implies that the title is clear of any clouds or legal issues that could complicate or prevent a sale. For a title to be considered marketable, it should demonstrate the ability to be sold or financed without concern for potential challenges or disputes. This means that there are no outstanding liens, encumbrances, or legal disputes associated with the property, making it attractive to prospective buyers and lenders. A marketable title assures that the seller has the legal right to transfer ownership and that the buyer will receive good title, free from any issues that could affect their interest in the property.