DEFINITION of 'Perfect Title'

A title deed for real estate that does not have any liens attached to it. A perfect title becomes so after all liens or other defects have been removed. Perfect titles stand in contrast to quiet titles or cloud on titles.

Perfect titles can also sometimes be referred to as "good titles."

BREAKING DOWN 'Perfect Title'

Most properties are bought and sold with perfect or good titles. It is often necessary to perform a title search to find out the past owners of a property to make sure no other interests in the property exist. Perfecting a title is the process of clearing all prior claims on a title to allow for its sale or assignment.

RELATED TERMS
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