Margaret enters into a contract to sell her Bronx property to Paul. The contract includes a clause stating that Margaret will provide marketable title. A title search reveals an old easement that was never properly recorded but is still valid. Paul refuses to close, claiming the title is unmarketable. Under New York law, is Paul correct?
Correct Answer
C) It depends on whether the easement materially affects the property's use or value
Under New York law, marketable title means title free from reasonable doubt and material encumbrances. An easement may or may not render title unmarketable depending on its impact on the property's use and value. Minor easements that don't significantly affect the property may not make title unmarketable, while substantial easements might.
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