The title to property is clear if a person is able to pass the property to another person free of the claims of any third person eg: a car has clear title if it is not registered in the Register of Encumbered Vehicles (REVS).â€¢ Used Cars
A title to property that is free and has no known hindrances, burdens, or other encumbrances. When buying foreclosed real estate, it is important to buy land and property with clear title, as this property will give you the most options when you wish to lease, rent, or sell your property for profit.
When the seller holds the only legal claim to the property and no one holds any demands on that seller for the property (i.e. there are no defects or encumbrances), he has a clear title. In contrast, a marketable title and an insurable title may include some minor claims on the property, but they are insignificant to the transfer of the property.
Title to property that is free from liens, defects or other encumbrances, except those which the buyer has agreed to accept, such as mortgage to be assumed, the ground lease of record, and the like; established title; title without clouds.
Clear title is the phrase used to state that the owner of real property owns it free and clear of encumbrances. In a more limited sense, it is used to state that, although the owner does not own clear title, it is nevertheless within the power of the owner to convey clear title. For example, a property may be encumbered by a mortgage.