What does it mean to “clear title” on a property?

Clearing title on a property refers to the process of resolving any claims, liens, or disputes that affect the property's ownership rights. This is a critical step for any real estate transaction because potential buyers or lenders must be assured that the seller holds a valid, unencumbered title to the property. Any existing issues, such as mortgages, unpaid property taxes, judgments, or other claims, must be identified and resolved through legal means, such as paying off debts or negotiating settlements.

By ensuring that the title is clear, the seller can confidently transfer ownership to the buyer without the risk of future legal complications stemming from unresolved claims or disputes. This not only protects the buyer's investment but also facilitates a smoother transaction process overall.