DEFINITION of 'Clear Title'
Also known as "clean title," "just title," "good title" and "free and clear title." A clear title is a title without any kind of lien or levy from creditors or other parties and poses no question as to legal ownership. For example, an owner of a car with a clear title is the sole undisputed owner, and no other party can make any kind of legal claim to its ownership.
BREAKING DOWN 'Clear Title'
A clear title is necessary in any real estate transaction. Title companies must do a search on every title in order to check for claims or liens of any kind against them before they can be issued. Erroneous surveys and unresolved building code violations are two examples of blemishes that can make a title "dirty."