Does a seller have to own the property at the time of the contract to transfer marketable title?

The correct answer highlights a key principle in real estate transactions: a seller does not need to own the property at the time of signing the contract to transfer marketable title, provided they can produce clear title at the closing. This means that a seller might, for example, be under contract to purchase the property from another owner and have the requisite rights to sell it to a buyer. The seller is obligated to ensure that the title is clear, meaning there are no liens, disputes, or claims against it, which will be addressed and resolved by the time the transaction closes.

This principle allows for flexibility in real estate transactions, enabling individuals to enter into agreements based on contracts rather than only ownership. Therefore, as long as the seller can prove they have the legal ability to transfer title during the closing process, ownership at the outset is not strictly necessary.

In contrast, the other options propose conditions or requirements that don't align with this understanding of real estate practices. Some imply ownership is essential at all points of the transaction, which would restrict the ability to engage in contracts involving properties not owned at the time of agreement. Understanding these nuances is vital in navigating real estate transactions effectively.