What is required for the seller to prove a marketable title?

Prepare for the Minnesota Real Estate Salesperson Exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

To establish a marketable title, the seller must provide proof of ownership or valid evidence of title. This typically entails demonstrating that they hold the legal right to sell the property and that there are no significant legal barriers or claims against it. A marketable title ensures that the buyer can acquire the property without facing unforeseen issues related to ownership disputes, liens, or encumbrances.

The concept of marketable title is fundamental in real estate transactions, as it protects the buyer's interests. When a title is deemed marketable, it indicates that the seller has satisfied all legal requirements for ownership and can transfer that ownership legally and without complications.

Other options, such as an insurance policy, property appraisal, or sales contract, do not directly serve as proof of ownership. Instead, they may support various aspects of the transaction but do not establish the seller's right to convey the title itself. An insurance policy could cover potential title defects, an appraisal assesses the property's value, and a sales contract formalizes the agreement between buyer and seller, but none of these can substitute for the need to demonstrate ownership through adequate evidence of title.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy