Clear title

Title that is clear of all claims or disputed interests. It is necessary to have clear title to a piece of real estate before it can be sold by one party to another. In order to obtain a clear title, it is usually necessary to have a title search performed by a title company, which may find various clouds on the title such as an incomplete certificate of occupancy, outstanding building violations, claims by neighbors for pieces of the property, or an inaccurate survey. Once these objections have been resolved, the owner will have a clear and marketable title. See also Bad Title; Cloud on Title.

A Marketable Title one free of Clouds and disputed interests.
Example: It is necessary to obtain clear title in order to convey a General Warranty Deed in a transaction.

Unencumbered or unrestricted legal ownership that is free from doubt as to its validity.

The phrase implies that ownership is not subject to claims by anyone but the person holding title. It is also called marketable title, or title that can be easily transferred or sold because of its lack of encumbrances.

The examples and perspective in this article may not represent a worldwide view of the subject. Please improve this article and discuss the issue on the talk page.

Clear title is the phrase used to state that the owner of real property owns it free and clear of encumbrances. In a more limited sense, it is used to state that, although the owner does not own clear title, it is nevertheless within the power of the owner to convey clear title. For example, a property may be encumbered by a mortgage. This encumbrance means that no one has clear title to the property. However, standard terms in a mortgage require the mortgage holder to release the mortgage if a certain amount of money is paid. Therefore, a buyer with enough money to satisfy both the mortgage and the current owner can get clear title.

This legal term article is a stub. You can help Wikipedia by expanding it.

This real estate article is a stub. You can help Wikipedia by expanding it.

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)