What is a "clear title" in property ownership?

A "clear title" refers to a title that is free of any liens, claims, or encumbrances that may limit the owner's ability to transfer the property. It ensures that the property can be sold or mortgaged without complications arising from outstanding debts or legal disputes that could affect ownership. This means that the owner has the legal right to use, sell, or lease the property without the interference of other parties asserting any claims.

In the context of property transactions, having a clear title is vital for buyers as it provides assurance that they receive full ownership rights without worrying about hidden claims or restrictions that could emerge later. A clear title gives a sense of security in the investment being made, making it easier to establish a definitive transfer of ownership.