What Is Meant By Clear Title?

How do you prove a property is free and clear?

ASK YOUR TITLE COMPANY FOR A PRELIMINARY TITLE ON THE PROPERTY YOU NEED PROOF THAT IT’S FREE AND CLEAR.

This, coupled with the HUD1 from the purchase, shows that you didn’t use a loan to purchase it, and there is no existing lien from a mortgage on the property..

What are common title defects?

A title defect may also be referred to as a “cloud.” These must be resolved before selling the property, and they include some of the following: Errors in the public records. Mechanic’s liens. Bankruptcies.

Can a house be sold with a lien on it?

Even if the debt exceeds the property value, you can still sell a house with a lien on it. … You don’t have to pay these settlements before closing—liens against houses can be paid in multiple ways. Traditionally, a seller will pay these debts at closing where the debts are deducted from the proceeds of the sale.

What is back title?

A back title letter is a document given by a title insurance company to an attorney representing a buyer or seller that describes the history of the title. They are used legally to give the condition of a title, and the title is usually handled by a reliable examiner before a formal letter is released to the attorney.

What do title companies look for?

There are many factors to consider when selecting a title insurance company, such as local expertise, service standards, market conduct and commitment to the community. Be sure to shop around and ask questions to make sure you’re comfortable with your title company.

What is the difference between a deed and title?

A title refers to the legal right to own something, especially land or property, while a deed is the document that shows you have this right.

Does a deed mean you own the house?

When you own a home, you own both the deed and title for that property. In real estate, title means you have ownership and a right to use the property. … The deed is the physical legal document that transfers ownership. It shows who you bought your house from, and when you sell it, it shows who you sold it to.

What is a clean land title?

A clear title is a title without any type of lien or levy from creditors or other parties that would pose a question as to legal ownership. … A clear title is also called a “clean title,” a “just title,” and a “free and clear title.”

Can a house be sold without a clear title?

You can’t transfer ownership of a property until you “clear title.” That means you’ve proven your title to the house is free of any clouds or defects such as liens, judgments, or bankruptcies.

How do you resolve title issues?

Many title issues can be resolved by filing one of three common documents: A quit claim deed removes an heir and clears up title among co-owners or spouses. A release of lien/judgment removes a paid mortgage or spousal or child support lien. A deed of reconveyance records payment of a mortgage under a deed of trust.

What happens if one person wants to sell a house and the other doesn t?

If one wants to sell and the other does not, the one who wants to sell can sell his interest anyway. … If there is a mortgage on the property, the lender will take the property if payments are not made but will not take a 1/2 interest in the property if your brother decides he just does not want to pay any more.

How long does it take for title to clear?

about ten to fourteen daysThe usual time that it takes for the title policy to be cleared is about ten to fourteen days. It, however, is uncommon for the period to extend past the two-week mark.it should be noted that this period can be affected by several different factors .

How do title companies do title searches?

How Title Searches Work. … When performing a title search, the attorney or title company will conduct research using public records and legal documents to identify the vested owner, the liens or other judgments on the property, the loans on the property, and the property taxes due.

How do I clear a property title?

Luckily, there are a number of options available if you want to clear the title of a home you are considering. You can perform the title search yourself. Property records are open to the public, so you can check with your local tax assessor’s office then check with your county clerk or courthouse.

A title search is fairly easy and can save you some money if you are able to do it yourself. The first thing you are going to do is go to your tax assessor’s office. Typically this is located in your county or city records office. … With that information you should be able to find the title.

How do you know if you have a clear title?

If the history shows a clean title, you can use the report as a selling tool to assure potential buyers that there are no hidden problems.DMV.org: Vehicle History Reports.Carbuyingtips: AutoCheck Sample Report.NMVTIS: Understanding an NMVTIS Vehicle History Report.AutoCheck: Buy an AutoCheck Report.More items…

What happens if seller Cannot get clear title?

If the seller or buyer fails to comply with any of the terms or conditions contained in the contract—perhaps the seller fails to provide clear title to the property, for example—that party is said to have breached or defaulted on the agreement. The other party might then have a legal claim against the breaching party.

What do you mean by clean title?

A clean title is free from any encumbrances such as mortgage from a bank or lending companies. Whatever transactions or legal matters that transpire on the land, as a rule, it must be annotated in the title.