What does "marketable title" imply in real estate transactions?

Marketable title in real estate transactions refers to a title that is free from significant defects, allowing it to be sold or mortgaged. This means that the title does not have any liens, encumbrances, or other issues that could jeopardize the buyer's ownership or use of the property. A reasonable buyer typically expects the title to be clear and transferable without any legal complications that could arise after the purchase. This expectation stems from the desire for assurance that they will be able to enjoy their property without risk of future claims or liabilities.

The other options do not align with the concept of marketable title. For instance, leasing a title to another party does not guarantee that the title is marketable. A title held for a long time does not inherently suggest that it is free from defects or claims. Likewise, a title requiring extensive litigation would indicate complications that make it far from marketable, as potential buyers would be deterred by the potential legal issues involved.