What does clear title mean on a house?

When a buyer purchases a house with clear title, they have full rights to the property. In some cases, a lender may place a lien on the house to ensure that the buyer pays off the mortgage but once the mortgage is paid off, the buyer has full rights to the property.

What is clear title in a mortgage?

A clear title is a deed of ownership that has been properly recorded in the county where the property is located. When a deed is recorded, it is considered a public record and provides proof that the property is owned by the person whose name is listed on the deed. This allows a homeowner to show a lender that they are the legal owner of their property. If someone else has a deed claiming to own the property, the lender may not be able to verify that the person listed on their deed is the

What does clear title mean in a contract?

If you decide to purchase a property with clear title, it means you can legally claim the property as your own without any legal challenges, even if you find out the previous owner had an outstanding debt on the property. The process is simple. Ask the previous owner’s mortgage lender to provide you with a deed of release of liability. A deed of release of liability basically states that the previous owner has transferred the deed of ownership to you, free and clear of any mortgage or other liens.

What does clear title mean in real estate?

A clear title means the current owner has no legal claim against the property. It means the previous owner has conveyed clear title to the current owner. In other words, the current owner has no outstanding liens, judgment liens, or other claims against the property.

What does clear title mean in a mortgage?

If you decide to refinance your existing mortgage, the lender will verify the current payoff amounts on the existing loan and determine whether the new loan will exceed the amount you owe. If the current loan balance is higher than the amount you owe, the lender may need a clear title and deed of transfer to verify that the property is free and clear of any other liens or claims.