What is typically considered the best evidence of a marketable title?

A title insurance policy is considered the best evidence of a marketable title because it provides assurance to the buyer that the property is free of defects and encumbrances that could affect ownership. This policy insures against potential issues that may arise related to the title, such as unresolved liens, claims, or other defects that were not discovered during the title search. It serves as a protective measure, offering financial backing if any title issues surface after the transaction is completed.

In contrast, a warranty deed conveys ownership and guarantees that the seller holds clear title to the property and has the right to sell it, but it does not provide the same level of assurance against future claims. A closing disclosure outlines the financial details of a real estate transaction but does not directly address the condition of the title itself. A quitclaim deed transfers whatever interest the grantor has in the property without any warranties or guarantees, making it the least reliable for establishing marketable title. Thus, the title insurance policy stands out as the most comprehensive and supportive evidence of a marketable title in real estate transactions.