What Is Marketable Title?
Marketable title means the property's ownership is clear enough that a reasonable, informed buyer would accept it without hesitation. It does not require a perfect title with zero encumbrances. Standard easements, recorded HOA declarations, and routine deed restrictions do not make a title unmarketable. What makes a title unmarketable is a defect serious enough that a buyer could reasonably refuse to close: an unresolved cloud on title, a break in the chain of title, or an outstanding lien that the seller cannot or will not satisfy.
Florida Legal Context
Florida's Marketable Record Title Act (MRTA), Chapter 712, Florida Statutes, establishes a statutory framework for determining marketable title. MRTA provides that any person who has an unbroken chain of title for at least 30 years holds marketable record title, and most claims or encumbrances that predate the root of title are automatically extinguished. This simplifies title searches and eliminates ancient defects that would otherwise cloud the title indefinitely.
However, certain interests survive MRTA and can still affect marketable title:
- Recorded easements and use restrictions filed by a common grantor (developer declarations)
- Government liens and interests (property taxes, state and federal tax liens)
- Rights of persons in possession of the property
- Interests preserved by filing a notice under Section 712.06, Florida Statutes
The standard FAR/BAR residential contract requires the seller to deliver "good and marketable title" insurable by a nationally recognized title insurance company. If the title company identifies a defect that makes the title unmarketable, the seller has a specified cure period (typically 30 days) to resolve the issue. If the seller fails, the buyer can cancel the contract and recover their earnest money deposit.
Marketable Title vs. Insurable Title
These terms are related but not identical. Marketable title means the title is legally defensible and free from serious defects. Insurable title means a title company is willing to issue a policy on it, sometimes with exceptions. A title company may agree to insure a title that has a known defect (listing it as an exception on the policy), but that does not make the title marketable. Under the FAR/BAR contract, the seller must deliver title that is both marketable and insurable.
Related Terms
- Clear Title — Title free from liens and defects, closely related to marketable title
- Cloud on Title — A defect that may render title unmarketable
- Quiet Title Action — Lawsuit to restore marketable title by removing clouds
- Chain of Title — Must be unbroken for 30+ years under MRTA
- Title Insurance — Issued when title meets the marketable standard
How Barnes Walker Ensures Marketable Title
Barnes Walker Title examines every property's title for marketability before closing. If the title does not meet the marketable standard, the firm's attorneys identify the specific defect and work to resolve it, whether through a lien payoff, corrective deed, or quiet title action. For questions about title quality on a property you are buying or selling, submit a title inquiry.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC