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Question #8 of 60
Which statement is TRUE about marketable title in Texas?
A) Marketable title insures that if there is a claim against the title, the claim can be defeated.
B) Texas title insurance companies insure marketable title.
C) Texas title insurance companies do not insure marketable title.
D) Marketable title exposes a purchaser to the hazard of litigation.

Ask by Schmidt Wagner. in the United States
Mar 31,2025

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Texas title insurance companies do not insure marketable title.

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The Deep Dive

In Texas, marketable title is essential for ensuring that a property can be sold or mortgaged without disputes. It generally means that the title is free from significant defects, ensuring smooth transactions. Correctly establishing marketable title helps in protecting buyers from future legal issues, making it a crucial aspect of real estate dealings.
When it comes to title insurance, Texas title insurance companies primarily focus on protecting buyers and lenders from potential defects in the title that may arise after the sale. They provide coverage for losses due to liens, claims, or damages related to the property title, which makes it vital for buyers to secure appropriate title insurance for their investments.

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