A well-located parcel has strong demand, excellent utility, and very limited competing supply, but a recorded cloud on title prevents most lenders from financing buyers. What is the most likely immediate market effect?
Correct Answer
D) Value falls because impaired transferability limits marketability and closing ability
Even when demand, utility, and scarcity are strong, value can decline if transferability is impaired. A title cloud that blocks financing reduces marketability, shrinks the pool of buyers, and makes closing more difficult, which puts downward pressure on value.
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