What Is Unmarketable Title?
Unmarketable title is title to real estate that has a defect serious enough that a reasonable, well-informed buyer would not accept it — or that a court would not force a buyer to accept. The property may still be owned, but the cloud on title makes it difficult to sell, mortgage, or insure until the problem is resolved. The opposite is "marketable title."
Common Causes of Unmarketable Title
- Liens — unpaid mortgages, judgments, taxes, or contractor's claims
- Breaks in the chain of title — a missing or defective deed in the ownership history
- Boundary or survey problems, encroachments, or undisclosed easements
- Errors in recorded documents, forged signatures, or competing ownership claims
How It Is Resolved in Florida
A Florida title search uncovers these defects before closing. Many can be cleared by paying off a lien, recording a corrective deed, or obtaining missing signatures; a more stubborn cloud may require a quiet title action to have a court confirm ownership. Title insurance then protects the buyer and lender against covered defects that surface later. A purchase contract's promise of marketable title gives the buyer remedies if the seller cannot deliver it.
Related Terms
- Title — What must be marketable to close
- Title Insurance — Protection against covered defects
- Chain of Title — Where breaks create unmarketability
Barnes Walker Real Estate
Barnes Walker's real estate attorneys and title team examine, clear, and insure title — and bring quiet title actions when needed — across Southwest Florida. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC