Glossary / Marketable Title
Marketable Title
Title clean enough to sell, lease, or borrow against without reasonable objection.
The threshold most curative work is aiming for. "Insurable title" is a higher bar (a title insurer will write a policy without exception); "good title" is roughly equivalent to marketable. The exact definition varies by state and contract.
For mineral title specifically, marketable typically means: (a) chain of title traces to sovereignty without unexplained breaks, (b) all known clouds are documented or quieted, (c) all spousal joinder requirements are satisfied for community-property states, (d) all probate gaps are closed by AOH, executor's deed, or court order.
A drillsite title opinion certifies marketable title for the operator to spud. A division-order title opinion certifies marketable title to the decimal precision needed for royalty pay decks. The standard tightens as the use case escalates.
Related
Term
Cloud on Title
A defect in the chain of title that calls marketability into question.
Use case · DSTO
Drillsite Title Opinion
A formal title opinion required before spudding a well.
Use case · DOTO
Division Order Title Opinion
A title opinion that establishes the decimal interest of every royalty owner.