Clear Title

Clear title: A title without any liens from creditors that leaves no doubt as to legal ownership.

Clear title: Ownership claim to a property that is free of any encumbrances, such as claims, court-attachments, pending judgements or liens, and can, therefore, be sold. A clear title is a prerequisite to sell or mortgage a property.

Does Your Home Have a Clear Title?

A clear title indicates that a home can legally be sold, meaning it’s not subject to any liens or levies from creditors.

Title researchers will comb through property records and review all past transfers of the title, liens, judgements, and other relevant recorded documentation. The results will then be compiled into a single report, called a title search. The title search allows potential buyers to see any issues that could affect ownership.

Homeowners are free to check the title status of their home to ensure no lien, which can include mortgage liens, all non-voluntary liens, and choate and inchoate liens, are attached to their property.

According to real estate attorney Brian Farkas, “When purchasing real estate, it is important to make sure there is no lien on the property that will keep you from securing a clear title to the property. Generally, a bank or other mortgage lender will not provide mortgage financing until all liens on the property have been removed.

“The law does not require that liens be removed before title to property can be sold or transferred. But the lien will need to be cleared up if the buyer needs financing or wants clear title. If property is transferred without the lien being paid off, it remains on the property. Thus, in transfers between relatives, the new owner may be willing to take title to property that already has liens encumbering it.”

As a homeowner, it is important to be aware of any real estate liens that could make the title to a property unclear. A lien can make the property collateral against a debt owed to a creditor. If the debtor is unable to repay the loan, the creditor will often look to the collateral, such as the home, as a source for payment of the debt.

Clear Title

Clear title: A title without any liens from creditors that leaves no doubt as to legal ownership.

Clear title: Ownership claim to a property that is free of any encumbrances, such as claims, court-attachments, pending judgements or liens, and can, therefore, be sold. A clear title is a prerequisite to sell or mortgage a property.

Does Your Home Have a Clear Title?

A clear title indicates that a home can legally be sold, meaning it’s not subject to any liens or levies from creditors.

Title researchers will comb through property records and review all past transfers of the title, liens, judgements, and other relevant recorded documentation. The results will then be compiled into a single report, called a title search. The title search allows potential buyers to see any issues that could affect ownership.

Homeowners are free to check the title status of their home to ensure no lien, which can include mortgage liens, all non-voluntary liens, and choate and inchoate liens, are attached to their property.

According to real estate attorney Brian Farkas, “When purchasing real estate, it is important to make sure there is no lien on the property that will keep you from securing a clear title to the property. Generally, a bank or other mortgage lender will not provide mortgage financing until all liens on the property have been removed.

“The law does not require that liens be removed before title to property can be sold or transferred. But the lien will need to be cleared up if the buyer needs financing or wants clear title. If property is transferred without the lien being paid off, it remains on the property. Thus, in transfers between relatives, the new owner may be willing to take title to property that already has liens encumbering it.”

As a homeowner, it is important to be aware of any real estate liens that could make the title to a property unclear. A lien can make the property collateral against a debt owed to a creditor. If the debtor is unable to repay the loan, the creditor will often look to the collateral, such as the home, as a source for payment of the debt.

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