What is the outcome if a property's title is deemed unmarketable?

Prepare for the Maryland Land Title Examination. Utilize flashcards and multiple-choice questions, each accompanied by hints and explanations. Ensure your success on test day!

When a property's title is deemed unmarketable, it suggests that there are significant issues affecting the property's ownership rights that make it difficult or impossible to sell or transfer the property freely. In this context, if the title is unmarketable, potential buyers might be hesitant to go through with the purchase because they may face challenges in securing financing. Lenders typically require a clear and marketable title before they agree to provide a mortgage. This can lead to the sale failing altogether if the buyer cannot obtain the necessary funds to complete the transaction due to the title issues.

The other choices do not align with the implications of an unmarketable title. The idea that the property is automatically repossessed does not apply, as repossession is typically related to foreclosure issues rather than title status. Selling the property without restrictions is also inaccurate, as an unmarketable title implies there are restrictions that prevent a straightforward sale. Additionally, while government grants may exist for various purposes, they are not a direct outcome of the title being unmarketable. Therefore, the most accurate outcome is the potential difficulty in securing financing, which can result in the failure of the sale.

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