What defines a title that is free from significant encumbrances or defects?

A title that is free from significant encumbrances or defects is referred to as a marketable title. This term indicates that the property can be sold or mortgaged without worry that other claims or interests will interfere with the buyer's rights. Marketable titles assure potential buyers that there are no legal obstacles that would prevent them from enjoying the property to its fullest extent, making it a crucial aspect of real estate transactions.

While the term "clear title" is often used in a similar context, it can imply a different nuance related to issues like liens or specific claims against the property. "Clean title" typically refers to a title that is not encumbered by defects, but it is not a standard term in the same legal sense as "marketable title." "Transferable title" suggests the ability to transfer ownership but does not guarantee the absence of encumbrances. Therefore, marketable title is the most accurate term defining a title free from significant legal issues.