In an installment land contract, the buyer has to wait for closing to get title. The mortgage exists, but value is four times the debt. Which statement about marketable title is most accurate?

• A. The closing date, when all payments have been made and the deed is delivered.
• B. The signing date.
• C. The date the mortgage is paid off.
• D. The date the buyer completes all repairs.

Answer: (A)

Marketable title is the kind of title a reasonable buyer would accept—free of doubt and free of encumbrances when the title is transferred. In an installment land contract, the buyer doesn’t get legal title until the closing, when the deed is delivered and the purchase is completed. At that moment, any existing mortgage lien is typically paid off or released, so the title transferred to the buyer is marketable. The key is the actual transfer of the deed at closing, not the signing date, the mortgage payoff date alone, or whether repairs are finished.