Question: A title which is free of liens, defects and other legal issues as to ownership of the property is called a ___ title.
Answer: C. clear title | A clear title is a title without any questions as to legal ownership of the property.
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There are many steps involved in the home-buying process.
There are many steps involved in the home-buying process.
One of these steps is the title search. Once a purchase contract is signed, the title company or attorney will perform a title search to confirm that the seller is the property's legal owner and there are no liens, judgments, and defects on the title.
A title search ensures that the property has a clear title. A clear title means the seller owns the property free and clear, it is eligible for sale -- and after the sale closes, it will be transferred to you (the buyer) and no other party can challenge your ownership later.
In Florida, real estate purchase transactions require that the property has a clear title.
Title issues affect the closing process. Any issues found during this time must be resolved before the sale can push through. The timeline of fixing them vary depending on their nature -- some can be quick or the parties might agree to extend the contract -- but if it's too complicated, the deal can fall apart.
TIP FOR SELLERS Getting a title search in advance will give you enough time to resolve any existing issues that could delay closing.
You can contact us or post a comment if you have questions about this real estate topic. — Pierre J. Denis, REALTOR® serving Parkland, Coral Springs, Boca Raton, and the surrounding areas
Florida Real Estate: Clear Title | This blog post is for informational purposes only and does not constitute legal advice.