What does clear title mean in real estate?

When a property has clear title, it means the deed is in the name of the person it legally belongs to. This is a legal owner. There are no other claims on the property, such as a mortgage or an lien. The title is free and clear of any other claims from any previous owners.

What does clear title means in real estate transactions?

When transferring property rights to a buyer, the vendor is responsible for clearing the title of any liens, legal claims or debts that the previous owner held against the property. If the previous owner was unable to clear the title of their debt, the purchaser is not responsible for those debts. However, if the prior owner fails to clear the title of the property of any mortgage, the buyer will likely have to take the property subject to the existing mortgage.

What does clear title mean in real estate industry?

In order to sell or lease any property, the owner must have clear title. Clear title is the state of having no legal claims or disputes on a piece of property. This means that the previous owners’ debts are completely cleared and you own the property free and clear.

What does clear title mean in the real estate industry?

You can’t sell property until it has clear title. A clear title is an absolute guarantee that the title to the property conveys to you without any legal claims or liens against the property. This means that the previous owner’s debt is completely eliminated. When an owner takes a loss on a property, the debt is usually written off their balance sheet so the property cannot be taken away, but this does not legally transfer the title to the buyer.

What does clear title mean in Massachusetts?

In short, clear title means there is no legal challenge to the seller's right to sell the property. A deed is not clear of liens or encumbrances until the deed is recorded. In other words, the deed must be cleared of any outstanding recorded mortgage or other legal claim before it can be accepted as clear title.