Define clear title.

A clear title refers to a title that is free of liens and legal claims, establishing full ownership. This means that when a property has a clear title, the owner has the legal right to sell or transfer the property without any encumbrances that could threaten their ownership. It is essential for buyers and sellers in real estate transactions to ensure that the title of the property is clear, as any unresolved claims or liens can lead to legal complications in the future.

Understanding what constitutes a clear title is crucial in real estate transactions, as it assures prospective buyers that they won’t face unexpected issues related to ownership rights. Other options suggest situations involving disputes or multiple ownership claims, which indicate that the title is not clear. Options involving litigation or claims highlight problems that detract from the concept of clear title, making it evident that those scenarios do not provide the assurance of ownership that a clear title does.