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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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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