Explain the concept of "marketable title."

Marketable title refers to a title that is free from defects and can be sold, mortgaged, or otherwise transferred without the risk of litigation. This concept is crucial in real estate transactions because buyers expect to receive a title that is clear of any encumbrances, liens, or other legal issues that could impede their ownership or usage of the property. A marketable title assures the buyer that they will not face any disputes regarding ownership, which adds a layer of security to the transaction. It is vital for buyers and lenders as it minimizes the potential for future legal challenges and ensures the property can be used freely.

In contrast, the other choices do not accurately define marketable title. Specifically, referring to it as a type of title insurance misses the essence of what marketable title represents, which is about the condition of the title rather than the protection against defects. A property not currently under lease does not necessarily relate to the marketability of the title. Lastly, suggesting that marketable title is only valid for a limited time misrepresents its nature since marketable title remains valid as long as no defects arise that challenge its standing.