Definition
Clear title simply means nobody else has a claim on the property—no unpaid mortgages, tax liens, or other problems that would prevent you from owning it outright. It's what you want when you close.
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Clear title means the seller has full ownership rights with no competing claims. Before closing, all issues found in the title search must be cleared.
Pro Tip
Title insurance protects you if a problem surfaces later—don't skip it.
Example
The title search revealed a mortgage and tax lien. The seller arranged payoff with closing proceeds, resulting in clear title to transfer to the buyer.