First, there must be a land contract. The land contract is short-lived and endures only until step two, the closing of the transaction. Land Contract A contract for the sale of land must typically be in writing, signed by the buyer and the seller, and describe the land to be sold.
Marketable title means that the land to be sold is free from lawsuits and the threat of litigation.
For example, title would be unmarketable if the land is in violation of an applicable zoning regulation or is the subject of another's competing claim of ownership. Marketable title also means that there are no liens on the property from unpaid judgments payable by the seller. In the contract, the seller also impliedly promises not to make any false statements of significant fact. In most states, the seller will be liable not only for misrepresentations about the premises but also for the failure to disclose any hidden, noteworthy defects of which the seller has knowledge or reason to know. When a builder-vendor sells a new residential dwelling to a buyer, the land contract contains an implied warranty of fitness and workmanlike construction.