bad (defective, unmarketable) title – a reasonable buyer would refuse to accept it because of a conflicting claim, possible conflicting interests in, or litigation over the property

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bad title:

1. See defective title.

2. See unmarketable title. [1]

1. Title which is so defective that a purchaser is under no obligation to accept it. [3]

defective title:

1. A title that cannot legally convey the property to which it applies, usually because of some conflicting claim to that property. — aka bad title. [1]

1. The Uniform Commercial Code provides that title to a negotiable instrument is defective when the instrument, or any signature on it, is secured by fraud, duress, force, fear, or other unlawful means, or obtained for an illegal consideration.

2. Title to real estate is defective when it is not marketable. [3]

defective title to real estate – A title which is not marketable

defective title to instrument – The title of a person negotiating a negotiable instrument is defective when he obtained the instrument, or any signature thereto, by fraud, duress, force, fear, or foe other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith or under such circumstances as to amount to a fraud.  Uniform Negotiable Instruments Law § 55; Vincennes Sav. & Loan Asso. v Robinson, 107 Ind App 558, 23 NE2d 431, 24 NE2d 558[2]

unmarketable title:

1. A title that a reasonable buyer would refuse to accept because of possible conflicting interests in or litigation over the property.— aka bad title; unmerchantable title; nonmerchantable title. [1]

1. Title that a person of reasonable prudence and intelligence would not accept, or would not be willing to pay fair market value for, because it is not sufficiently clear. [3]


Disclaimer: All material throughout this website is compiled in accordance with Fair Use.

[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black, Editor in Chief Bryan A. Garner. ISBN: 978-0-314-61300-4

[2]: Ballantine’s Law Dictionary with Pronunciations Third Edition by James A. Ballantine (James Arthur 1871-1949).  Edited by William S. Anderson.  © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY.  Library of Congress Catalog Card No. 68-30931

[3]:  Ballantine’s Law Dictionary Legal Assistant Edition
by Jack Ballantine 
(James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.


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