What is the Marketable Title Act?

The Marketable Title Act in Massachusetts is a law that was created to ensure the validity of titles to real estate. This law, which was enacted in 1965, aims to protect the rights of those who are buying and selling real estate by establishing that only valid titles are transferrable. It does this by requiring records of titles to real estate to be kept up to date in a public registry, and that any defects in these titles be rectified before a sale is finalized. The law also creates a form of title insurance, which is a contract of indemnity. This means that if title issues are discovered after a sale, the title company that issued the insurance will pay any damages that result. This protects the buyer from taking on any additional liabilities associated with a defective title. Finally, the Act requires that any titles that are transferred must meet certain requirements, including being free from any liens or encumbrances and being able to trace clear ownership. The Act also requires that any documented rights to the property be disclosed in the transfer process, such as any existing covenants, restrictions, or easements. Overall, the Marketable Title Act in Massachusetts helps to ensure that real estate transactions are valid and secure. It requires that all titles be kept current and valid, that all documented rights to the property be disclosed, and that title insurance be provided for buyers. Therefore, it is an important law in the state of Massachusetts when it comes to buying and selling real estate.

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What is the Marketable Title Act?

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