If a portion of the title rests on adverse possession, what is the status of that title?

When a portion of the title rests on adverse possession, the status of that title is considered unmarketable. Adverse possession allows a person to claim ownership of a property under certain conditions, typically involving continuous and open use of the land for a specified period, without permission from the original owner. While the individual who claims title through adverse possession may have acquired rights to the property, these rights can be precarious and contested.

This uncertainty associated with adverse possession means that the property may not be freely transferable or easily sold in the real estate market. Potential buyers and lenders are often wary of properties with titles that involve adverse possession since such claims can lead to legal disputes over ownership rights. Therefore, the existence of an adverse possession claim renders the title unmarketable, as it creates a heightened risk and complexity regarding the true ownership of the property, making it less appealing to prospective buyers.

In contrast, other options may suggest that the title could still be marketable or capable of being insured without addressing the significant implications of an adverse claim. However, because of the inherent uncertainties and risks associated with adverse possession, the conclusion that the title becomes unmarketable accurately reflects the challenges faced in these situations.