Question

Which of the following best describes the function of the Marketable Record Title Act?

a. It provides a satisfaction of mortgage once a debt has been paid in full.
b. It serves to cure most defects in title that are more than thirty years old.
c. It is used in the process of eminent domain.
d. It is a police power used by local governments to raise property taxes.

Answer 1

The Marketable Record Title Act (MRTA) is a law that helps clear and simplify property titles by extinguishing old claims and defects. It serves to cure most defects in title that are more than thirty years old.

Step-by-step explanation:

The Marketable Record Title Act (MRTA) is a law that primarily deals with the transfer of real property titles. It is designed to help clear and simplify property titles by extinguishing old claims and defects on titles that are over 30 years old. MRTA makes it easier to establish a marketable record title, which is a title that is free and clear of any claims, liens, or encumbrances that are no longer enforceable.

For example, let's say a property has an old mortgage that has been paid in full but the mortgage does not appear in the public records. Under MRTA, the mortgage would be considered extinguished and the property owner would have a marketable record title once the 30-year period has passed.

Therefore, the best answer to this question is b. It serves to cure most defects in title that are more than thirty years old.