What is the Marketable Title Act?

The Marketable Title Act (MTA) is a law that governs the transfer of real property in the state of California. It was created in 1935 to protect buyers when they purchase real estate. The law serves to simplify the process of title transfers and to guarantee that the title of the property is marketable or unencumbered by liens or claims. The MTA requires that each buyer of real property receive a certificate of title stating that the title of the property is free and clear of any liens or defects. The certificate must be issued by the county recorder or the court where the deed was recorded. If a defect is discovered on the title after the purchase, the certificate of title will protect the buyer from any liability. The MTA also protects buyers from unrecorded claims or interests in the real property they purchase. Anything that was not recorded on the title prior to purchase is considered to have no legal effect. This prevents buyers from being held responsible for any claims or interests that come up after the purchase. Overall, the Marketable Title Act serves to protect buyers of real property in the state of California by guaranteeing that their title is free and clear of any liens or claims. It does this by requiring a certificate of title and preventing unrecorded claims from taking effect.

Related FAQs

What is a reversionary interest?
What is the difference between an easement appurtenant and an easement in gross?
What are the necessary steps for a real estate closing?
What is the Interpleader Statute?
What are landlord-tenant laws?
What is a mortgage?
What is the difference between a deed and a mortgage?
What is a deed of quitclaim?
What is a deed?
What rights does a tenant have under a lease?

What is the Marketable Title Act?

Related FAQs

Related Blog Posts