A clear title. The term is commonly used to mean the deed holder can prove ownership, unquestionably. To verify that, a title company can conduct a title search.
Other parties’ claims on the title are called title defects, or clouds on title.
What do these claims look like? They might be mortgage liens, court judgments, contracts with renters, solar contracts, or any agreements to allow access to part of the property. There could be unpaid taxes in the past, claims by relatives involving their rights in foreclosures or inheritances, even liens for fees and fines imposed by homeowners’ associations.
Having a clear title matters to a homeowner. Selling isn’t an option while there are liens or claims against the title. Straightforward enough… But there are some finer points worth knowing.
Continue reading “Real Property Basics: What Is a Clear Title?”
