Legal Definitions - good and merchantable abstract of title

Definition: A good and merchantableabstract of title is a concise statement that summarizes the history of a piece of land, including all conveyances, interests, liens, and encumbrances that affect title to the property. It is usually prepared for a mortgagee or purchaser of real property. This type of abstract of title shows clear, good, and marketable title, rather than just the history of the property.

Examples:

• When John wanted to buy a house, he asked for a good and merchantable abstract of title to make sure there were no issues with the property's ownership.
• Before approving a mortgage, the bank required a good and merchantable abstract of title to ensure that the property had a clear title.

These examples illustrate how a good and merchantable abstract of title is used to provide a summary of a property's ownership history and ensure that the title is clear and marketable. It is an important document for anyone buying or financing real estate.