Hawaii Pre-Licensing National Practice Exam 2025 – Your Complete Prep Guide

A title is considered "good and marketable" when it is free of disputes and defects, meaning that it can be sold or transferred without any legal problems that might arise from claims or issues regarding ownership. This type of title demonstrates clear ownership, providing assurance to potential buyers that the property is free from liens, encumbrances, or other legal claims that could disrupt the transaction or affect their use of the property.

When a title is free of disputes, it indicates that there are no ongoing legal disputes or challenges to the ownership, which is crucial for buyer confidence. Similarly, the absence of defects suggests that there are no issues that could impair the title's validity. In real estate transactions, good marketability ensures that the title can be easily transferred without concern for future claims, thus encouraging smoother sales processes and peace of mind for both buyers and sellers.

While other options like notarization, title insurance, or warranty deeds may contribute to a title's integrity, they do not alone guarantee that the title is free of disputes and defects. Notarization serves as a form of verification of documents rather than an assurance of clear title. Title insurance provides protection against defects that may arise after the purchase but does not confirm that the title was free from defects at the