What is a clear title in real estate?

A clear title in real estate refers to a property title that is free of defects and encumbrances. This ensures that the owner has the legal right to sell the property without any outstanding claims or unresolved liens that could affect the ownership. A clear title provides assurance to buyers and lenders even during the transaction process, as it signifies that there are no barriers that could impede the transfer of ownership. This includes not having any outstanding mortgages, liens, or legal disputes that could challenge the seller's claim to the property.

In contrast, titles that have multiple ownership claims, are disputed in court, or require extensive repairs indicate issues that can complicate ownership rights or the ability to transfer the property, thus directly contrasting with the concept of having a clear title.