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Transferability of Real Estate


One of the four elements that determine property value.


A clouded title not only affects a property’s marketability, but also its transferability. Some encumbered properties cannot legally be sold until existing encumbrances are removed. Transferability determines whether a property could be transferred free of any encumbrances that would affect sole ownership of the buyer.

The four elements that determine a property’s value can be found below.

How Value is Determined

Demand: What do market conditions dictate? Are there many buyers on the market looking for a similar property to the one being appraised?

Transferability: Are there any liens or encumbrances stopping the sale of a property?

Scarcity: Is the property scarce or are there many comparable listings available on the market?

Use: What is the property’s use, residential or commercial? What are the property’s features? Does the property contain any special features, such high ceilings, a gazebo, a movie theater, or other customized installments?