Illinois Real Estate Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The most reliable evidence of marketable title is title insurance. Title insurance protects buyers and lenders from losses due to defects in a title that may not have been discovered during the title search process. When a buyer purchases title insurance, it provides assurance that the property has a clear title and that the buyer’s ownership will not be challenged by any existing claims or liens.

While a deed is an important document that signifies ownership transfer, it does not necessarily confirm that the title is free of encumbrances or legal issues. An abstract of title summarizes the history of the property’s title, detailing various transactions and claims, but it does not provide protection against title defects. A property survey depicts the boundaries and layout of the property, yet it also does not address potential title issues.

Therefore, title insurance stands out as the most robust means of ensuring a marketable title, offering both validation of title status and financial protection against unforeseen disputes or claims.