Detailed Answer
(d) Marketable title means that the title to real property
is free from encumbrances, such as mortgages, easements, and
liens and defects in the chain of title. However, there is an exception.
Most courts hold that the seller’s obligation to convey marketable
title does not require the seller to convey the title free
from recorded zoning restrictions, visible public rights-of-way or
recorded easements; therefore answers (a) and (b) are incorrect.
An unrecorded easement, however, would be a defect in marketable
title. Therefore, answer (d) is correct. Answer (c) is incorrect
because a lawsuit concerning negligence would generally not
affect marketable title.