Unmarketable Title | Practical Law
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Practical Law UK Glossary 3-566-2050
(Approx. 3 pages)
Title to real property with an
on the property that is sufficient enough to justify a potential:
Purchaser not purchasing the property.
Lender not funding a loan secured by the property.
Tenant not leasing the property.
Unmarketable title is a covered risk in the 2006
American Land Title Association
(ALTA) owner's and loan
title insurance policies
The ALTA title insurance policy coverage for unmarketable title:
Applies only to those claims resulting from title defects, such as an encumbrance or cloud on the title.
Does not include problems relating to the use of the property, such as environmental contamination.
Unmarketable title is different than insurable title. What constitutes unmarketable title is determined by the local statutes and case law of the state in which the real property is located.
Unmarketable title defects can include:
Outstanding mortgages and other
Adverse possession claims.
chain of title
the names of the grantors or grantees.