Which is the best evidence of marketable title in a non-Torrens system?

Which is the best evidence of marketable title in a non-Torrens system?

• A. A signed deed.
• B. A title certificate.
• C. Title insurance.
• D. An attorney's opinion.

Answer: (C)

In a non-Torrens system, marketable title is best evidenced by a title insurance policy because it provides actual financial protection against title defects and encumbrances. A signed deed only shows transfer of ownership and does not guarantee that the title is free from undiscovered problems. A title certificate is a feature of Torrens systems, not typical in non-Torrens jurisdictions. An attorney’s opinion can be helpful, but it is just a professional view and does not offer the insured protection against future claims. Title insurance, on the other hand, guarantees insurability and shifts the risk of defects to the insurer, making it the strongest evidence that title is marketable.

In a non-Torrens system, marketable title is best evidenced by a title insurance policy because it provides actual financial protection against title defects and encumbrances. A signed deed only shows transfer of ownership and does not guarantee that the title is free from undiscovered problems. A title certificate is a feature of Torrens systems, not typical in non-Torrens jurisdictions. An attorney’s opinion can be helpful, but it is just a professional view and does not offer the insured protection against future claims. Title insurance, on the other hand, guarantees insurability and shifts the risk of defects to the insurer, making it the strongest evidence that title is marketable.