What does the term “clear title” mean?

The term "clear title" refers to a title that is free of liens or legal issues. When a property has a clear title, it means that the owner has full ownership rights without any encumbrances, such as mortgages, claims, or legal disputes that could impact the sale or transfer of the property. This clarity is vital for buyers, as it assures them that they will have unimpeded rights to the property, allowing for a smooth transaction.

In contrast, titles that have been disputed in court, include shared ownership rights, or are pending bank approval involve complexities that can cause delays or conflicts in property ownership, thus not qualifying as "clear titles."