Which type of title must a title agent examine for encumbrances and liens before a conveyance?

A marketable title refers to a title that is free from significant defects, liens, or encumbrances, ensuring that it can be legally transferred to a new owner without issues that could affect ownership rights. This means that before a conveyance takes place, a title agent must rigorously examine the marketable title for any existing encumbrances or liens.

The presence of liens—such as mortgages, judgments, or other financial claims—can severely affect the marketability of a property. Therefore, a thorough examination of the title is critical in order to provide assurance to the buyer (and their lender) that they will obtain clear and unencumbered ownership of the property.

While concepts like fee simple determinable, leasehold, and remainderman involve different interests and rights in property, they do not directly address the necessity for a title agent to inspect for encumbrances prior to conveyance. Therefore, the focus on marketable title stands out as the definitive type requiring such scrutiny during the title examination process.