What is meant by a title that is marketable?

A marketable title is considered to be one that is legally acceptable for a sale or transfer and provides a buyer with a reasonable assurance that they will enjoy their property without the threat of significant legal disputes. This means that the title is free from the probability of litigation, as any possibility of legal challenges can make a title unmarketable. A buyer typically expects that their ownership will not be contested, which directly impacts the value and usability of the property.

While other options touch on aspects of title quality, such as being free from encumbrances or restrictions, they do not fully encompass the requirements for a title to be deemed marketable. For instance, a title can have certain encumbrances or restrictions that do not necessarily lead to litigation but might still affect its marketability. Thus, option B focuses on the key criterion of reduced risk in obtaining clear legal ownership, making it the most accurate choice regarding the definition of a marketable title.