Clear Title

Financial Dictionary -> Mortgages -> Clear Title

Clear Title is a title to property that does not have liens, or legal challenges to the ownership of the property.

This is a property loan where the monthly mortgage payment has been paid for the life of the loan and the deed to the property has been transferred to the owner and the owner has not taken any other loans on the property and all property taxes were paid.

When the property is being sold to another party in order to transfer it, any outstanding claim must be satisfied prior to the sale. The title before being transferred will be searched to ensure the new owner will have a clear deed to the property when paid off and no one having any claim can place a lien on the property from the prior owner.