Arizona Real Estate License Practice Exam

The term for a title that is free from defects and conveyable by the owner is marketable title. This concept refers to a property title that is clear and free from any issues that could cause legal disputes or hinder its transfer. A marketable title means that the seller can convey the property without the risk of challenges regarding its ownership.

Marketability is key in real estate transactions, as buyers generally seek assurance that the property title will not expose them to any future claims or legal obstacles. This kind of title allows for a smooth transaction process and assures potential buyers of their rights to the property.

On the contrary, equitable title involves rights to the property, not necessarily ownership; legal title refers to actual ownership status, which does not always guarantee that it is free of defects. Inequitable title, a less common term, suggests a title that may have issues or restrictions, further distinguishing it from what makes a title marketable.