Marketability

Unmarketability of Title due to _____________.
Comment: This exception may be used in connection with a matter that will not threaten title, such as certain gaps or minor defects. The title policies (except Texas) insure marketability of title. Marketable title is established and defined by case law, title standards (in some states), and marketable record title acts (in some states).

This Policy excepts to unmarketability of title to the land because _______________. The Company agrees that it will reissue its policy, containing the same exception and this provision upon request of the insured and payment of its scheduled premium to anyone subsequently acquiring an insurable interest.
Comment: This language excepts to unmarketability but the Company agrees to reissue its policy. Because it imposes no other limit on coverage, it still insures against loss (e.g., if title is lost) because of such matter. You may use this provision only with the Company’s approval. The title policies (except Texas) insure marketability of title. Marketable title is established and defined by case law, title standards (in some states), and marketable record title acts (in some states).

This Policy insures against loss or damage which the insured may sustain by reason of said right, claim, or matter, including unmarketability of title; provided, however, that with respect to said right, claim, or matter, the offer of any licensed title insurance company to insure the title to the land in the manner set forth herein shall be conclusive evidence of the marketability of the title hereby insured. The Company agrees that upon request of any mortgagee or purchaser of the insured (or the mortgagee of such purchaser), it will issue its policy containing the same affirmative coverage set forth herein, but subject to the same condition. The Company shall not be liable for any loss or damage sustained by the insured by reason of rejection of title by a proposed purchaser, mortgagee, or assignee, or refusal to make a loan, or refusal to purchase the mortgage by reason of the right, claim, or matter, provided the insurance is available as set forth herein.
Comment: This provision effectively defines marketability as the willingness to reissue. Because it imposes no other limit on coverage, it still insures against loss (e.g., if title is lost) because of such matter. The title policies (except Texas) insure marketability of title. Marketable title is established and defined by case law, title standards (in some states), and marketable record title acts (in some states).