What is the exam-ready answer?
| Roadmap lesson | 108 of 500 |
|---|---|
| Official syllabus topic | Marketable Title Versus Insurable Title |
| Official PSI area | Transfer of Title |
| Published area weight | 6% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
Complete lesson
Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.
Marketability
Marketable title need not be perfect, but material claims, uncertain ownership, significant encumbrances, or probable litigation can make it unmarketable under contract and law.
Insurability
An insurer may issue coverage while excluding a known matter or requiring a cure. Willingness to insure does not prove the buyer must accept every exception.
Other title terms
Legal title is formal ownership, equitable title describes beneficial or contract-based rights, and record title is what public records show. These terms answer different questions.
Objection and cure
The contract normally sets the title-evidence deadline, permitted objections, seller cure period, acceptable exceptions, and remedies if the defect remains.
Decision rule
Georgia-specific distinction
Worked example
Scenario. An insurer offers a policy but excludes a disputed driveway easement that is essential to access, while the contract requires marketable access rights.
Reason it through. Insurance with an exception leaves the key risk outside coverage and may not meet the contract's separate title standard.
Answer. The issue requires title objection and cure analysis under the contract; policy availability alone is not enough.
Common exam traps
- Equating insurable with marketable
- Demanding perfect title
- Ignoring policy exceptions
- Missing objection deadlines
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Can title be insurable but still fail a marketability clause?
- A. Yes
- B. No
- C. Only for leases
- D. Only after foreclosure
Show answer and explanation →
Answer: A. Yes
An insurer can exclude a risk that the purchase contract requires the seller to cure.
Question 2What controls the buyer's title-objection deadline?
- A. Purchase agreement and applicable law
- B. Appraisal
- C. Tax bill
- D. Listing photo
Show answer and explanation →
Answer: A. Purchase agreement and applicable law
The contract and law determine evidence, notice, cure, and remedy timing.
Question 3Does marketable title require absolute perfection?
- A. Yes
- B. No, it requires freedom from material reasonable doubt
- C. Only for cash sales
- D. Only for new homes
Show answer and explanation →
Answer: B. No, it requires freedom from material reasonable doubt
Minor or accepted matters may remain without creating material litigation risk.
Mastery tracking
Mark this lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain every core concept in plain English.
- Solve the worked example after changing one important fact.
- Identify the Georgia distinction before reading answer choices.
- Answer all three questions correctly and reject every distractor.
- Repeat the topic in mixed practice on a later day.
Recommended next lesson
Continue with Closing, Recordation, Parties, and Transfer Timing. Continue to roadmap lesson 109 and build on this decision rule.
Return to the Transfer of Title hub to see every official branch and the complete lesson sequence for this content area.