What type of title must a grantor transfer to a grantee according to property laws?

The correct choice is marketable title, which refers to a property title that is free from significant defects or claims that could affect the ownership of the property. Under property laws, when a grantor transfers a title to a grantee, it is essential that the title is marketable to ensure that the grantee can enjoy the property without the risk of future legal disputes regarding ownership. A marketable title assures the buyer that they can sell or mortgage the property in the future without encountering issues that could arise from liens, encumbrances, or ownership disputes.

Choosing marketable title over other types, such as conditional title or absolute title, is crucial because a conditional title may come with restrictions that limit the grantee's rights, while absolute title implies complete ownership but may not address potential defects or burdens on the property’s title. Fair title is not a standard term used in property law. Therefore, the emphasis on marketable title highlights the protection it provides to the grantee, ensuring a smoother transition and future use of the property without legal complications.