What must a seller's lawyer do to ensure a clear title during a real estate transaction?

To ensure a clear title during a real estate transaction, clearing all financial encumbrances is essential. A clear title means that the property is free from any liens, mortgages, or other claims that could interfere with the buyer's ownership. This process involves verifying and satisfying any outstanding debts or obligations tied to the property, such as unpaid property taxes or vendor liens, ensuring that ownership can be transferred without legal issues.

In real estate transactions, the title must be clear for the buyer to have unencumbered ownership rights, which are vital for securing financing and providing peace of mind regarding property use and enjoyment. This often includes working with creditors to release claims, which is a critical responsibility for the seller’s lawyer.

The other choices focus on different aspects of the transaction but do not directly address the fundamental requirement of ensuring a clear title. For instance, notifying the buyer of any defects relates more to transparency rather than the clearing of title; preparing a new title does not solve existing encumbrances; and increasing the sale price to cover costs does not impact the title's status or clarity. Hence, the emphasis on clearing financial encumbrances stands as the vital action needed to safeguard the buyer's interests following the sale.