Definition of Clear title:
A clear title is necessary for any real estate transaction because it firmly establishes who is the property owner. Title companies must do a title search to check for claims or liens of any kind against a title before it can be deemed clear. Erroneous surveys and unresolved building code violations are two examples of blemishes that can make a title “dirty.”.
A clear title is a title without any type of lien or levy from creditors or other parties that would pose a question as to legal ownership. For example, an owner of a home with a clear title is the sole undisputed owner, and no other party can make any kind of legal claim to its ownership. A clear title is also called a “clean title,” a “just title,” and a “free and clear title.”.
Ownership claim to an asset or property that is free of all encumbrances (such as known claims, court-attachments, liens, pending judgments) and, therefore, is marketable. A clear title is required to sell or mortgage a property. Also called clean title or perfect title.
How to use Clear title in a sentence?
- Title issues can arise in situations of separation, divorce, and heirs not being properly documented.
- A clear title is a title without any type of lien or levy from creditors or other parties that would pose question as to legal ownership.
- The presence of liens can create a cloud on title, meaning that a claim or an unreleased lien invalidates or impairs the owner’s title to the property.
Meaning of Clear title & Clear title Definition