When must a seller provide a marketable title in an installment land contract?

In the context of an installment land contract, the seller is obligated to provide a marketable title on the day of closing. This requirement means that by this point in time, the seller must ensure that the property title is free from defects and can be legally transferred to the buyer without any issues. Marketable title implies that the title is not subject to litigation or potential claims and is acceptable in the eyes of a reasonable buyer, which generally aligns with the point at closing when the buyer is expected to remit the full payment and take possession of the property.

In contrast, the other options do not accurately reflect when the seller must fulfill this obligation. For example, providing marketable title at the time of signing the contract (the point of signing) would not be feasible, as there are circumstances or title matters that might arise before closing. Similarly, a marketable title after the first payment or upon buyer's request fails to ensure that the buyer has the necessary security and confidence in their investment at the appropriate time when the transaction is finalized. Therefore, the timing of the marketable title delivery is critical to ensuring a smooth and legally sound sale process.