<P> Merchantable title and marketable title are synonymous terms . </P> <P> In the absence of an agreement to the contrary, there is an implied undertaking in the contract that the vendor (person selling the property) has a marketable title . The contract typically provides that on failure of a vendor to deliver good and marketable title, the vendee (buyer) may rescind the contract and recover any deposit . </P> <P> If a deed is delivered and it has no warranty of title, the buyer has no recourse because the deed supersedes the contract . This means that the initial contract is no longer in effect . </P> <P> Sellers only have to tender good and marketable title on the date the conveyance is executed (date of closing). So a seller may contract to sell property it does not currently possess . Liability will be imposed on the seller for breach only if the seller does not have good and marketable title on the date of closing . </P>

At closing the seller delivers marketable title to the property