What does the term 'marketable title' mean in the context of Florida title insurance?
Correct Answer
D) Title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer
Correct: D - Title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer. Marketable title is title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer or that would interfere with the owner's use and enjoyment. Why not A: This option is incorrect because "Title that has been approved by a licensed real estate broker" does not match the rule tested by the question. The correct answer is "Title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer". Marketable title is title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer or that would interfere with the owner's use and enjoyment. Why not B: This option is incorrect because "Title that can be easily sold to another buyer" does not match the rule tested by the question. The correct answer is "Title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer". Marketable title is title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer or that would interfere with the owner's use and enjoyment. Why not C: This option is incorrect because "Title that includes mineral and water rights" does not match the rule tested by the question. The correct answer is "Title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer". Marketable title is title that is free from reasonable doubt and defects that would be objectionable to a prudent buyer or that would interfere with the owner's use and enjoyment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Constructive notice is the legal presumption that a person has knowledge of information that is available through public records or visible inspection of the property, regardless of whether they actually knew about it.
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.
More Titles Deeds Recording Questions
A Tampa property is being purchased for $450,000. The buyer wants to know the cost of owner's title insurance. Using Florida's promulgated rate of $5.75 per $1,000 of coverage, what is the title insurance premium?
In a Tampa transaction, a buyer wants the Florida rule on general warranty. Which statement is correct?
Which answer most accurately states the Florida rule for general warranty?
Sarah is selling her Miami Beach condominium to Robert. At closing, she signs a deed that contains warranties that she owns the property and has the right to convey it, but provides no warranties against defects that existed before she acquired the property. What type of deed did Sarah most likely execute?
John and Mary own property in Jacksonville as tenants by the entirety. John wants to secretly transfer his interest to his business partner without Mary's knowledge or consent. He executes a quitclaim deed to his partner. What is the effect of this deed?
- → What is the main difference between a general warranty deed and a special warranty deed in Florida?
- → Under Florida law, what does 'constructive notice' mean in the context of recorded deeds?
- → Which answer most accurately states the Florida rule for chain of title?
- → In Florida, all of the following situations would typically be excluded from standard title insurance coverage EXCEPT:
- → Non-single-family real property in Miami-Dade County is conveyed for $220,000. What total deed documentary stamp tax and surtax are due?
- → Sarah is purchasing a home in Miami and her attorney discovers that the current owner's deed was never properly recorded. The seller has been living in the property for 15 years and paying taxes. What is the most likely outcome regarding the validity of the seller's ownership?
- → Which deed is most commonly used in Florida residential transactions?
- → Sarah discovers that her neighbor's fence encroaches 3 feet onto her property, which she purchased 2 years ago in Jacksonville. Her title insurance policy shows no survey exception. What is the most likely outcome regarding her title insurance claim?
- → A Florida owner uses a quitclaim deed to transfer whatever interest the owner has to a family member. Which statement about that instrument is incorrect?
- → Lisa conveys property to Tom via warranty deed on Monday but doesn't record it. On Wednesday, Lisa conveys the same property to Susan via warranty deed, and Susan immediately records her deed. Susan had no knowledge of the prior conveyance to Tom. Under Florida's recording statute, who has superior title?
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A Gainesville buyer is told by their real estate agent that title insurance is optional in Florida. The buyer asks if they really need it for their $200,000 cash purchase. What is the most appropriate advice?
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A Pensacola buyer's title insurance commitment shows 'Exception 5: Easement for utilities as shown on recorded plat.' The buyer wants this exception removed. What must typically happen for the title company to remove this exception?