What is Marketable Title Vs Insurable Title | WhiteBoard Wednesday #5

In the previous episode of Whiteboard Wednesdays, we discussed the concept of a title search and how it can benefit both buyers and sellers. This episode, we take a look at the difference between a marketable title and an insurable title, and how a potential buyer should look at each.

A marketable title is, in many ways, the ideal. A home with a marketable title is one that is entirely free of defects; that is, it has no mortgages, liens, or judgments on either the property itself or the current owner. By some definitions, a marketable title must also be free of outstanding taxes, which may or may not be achievable at any given moment - for this reason, completely marketable titles are somewhat rare, particularly in the arena of real estate investment.

An insurable title, on the other hand, sets a more achievable standard and allows for the sale of properties for which the title is not impeccably clean. Essentially, an insurable title is one that may have certain defects - say, an issue with the chain of title due to a circumstance such as inheritance - but that can be insured against those defects, should they pose an issue in the future, rather than being unsaleable in its current form.

[maximhana]

What would marketable title mean for a land surveyor who insurable title as the norm?

[janinenadeau]

What does it mean when someone is selling a house with NO insurable title? Should you buy a property with no insurable title?

[gina]

let's say I buy a foreclosure from one of these auction houses and I get a Quitclaim Deed. what's the necessary steps to change to a warranty deed

[janinenadeau]

Should you buy a property with no insuranle title?