Title free of significant defects or encumbrances that a reasonably prudent buyer would accept.
Why Marketable Title matters on the exam
This term belongs to Transfer of Title. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Marketable Title
Every Freehold question shows why the right answer is right — and cites its source.
A seller with clear, marketable title simply refuses to sign closing documents and will not convey the property, with no lawful excuse. The buyer's realistic remedies generally include:
Suing for specific performance, suing for damages, or rescinding and recovering the earnest money
Automatically taking possession of the home without any court order
Nothing, since sellers can never be compelled to sell
Filing a criminal complaint against the seller with the local police department as the only available remedy
Show answer & explanation
Suing for specific performance, suing for damages, or rescinding and recovering the earnest money — When a seller wrongfully refuses to convey, the buyer may pursue equitable and legal remedies such as specific performance to compel the sale, a damages claim, or rescission with a refund of any earnest money paid.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
A quitclaim deed conveys:
A guaranteed marketable title
Whatever interest the grantor has, with no warranties
Title insured against all defects
Only a life estate in the property
Show answer & explanation
Whatever interest the grantor has, with no warranties — A quitclaim deed transfers whatever interest the grantor may hold — possibly none — without any warranties of title. It is commonly used to clear title clouds or transfer between family members.
Source: PSI National Real Estate Exam Content Outline §9 Transfer of Title
Recording a deed creates a rebuttable presumption of:
Delivery
Marketable title
Adverse possession
Escheat
Show answer & explanation
Delivery — Because grantors generally do not record deeds unless they intend to transfer them, recording gives rise to a presumption that delivery occurred, though this presumption can be rebutted with contrary evidence.
Source: PSI National Real Estate Exam Content Outline §9 Transfer of Title
Freehold is an independent study resource and is not affiliated with, endorsed by, or sponsored by PSI, Pearson VUE, or any state real estate licensing board or commission. Freehold does not guarantee passage of any licensing exam.
