Legal Definitions - title clearance

Definition: Title clearance refers to the process of removing any obstacles or issues that may prevent the sale or transfer of a property. This is typically done through a thorough examination of the property's title.

Example: Let's say you want to buy a house, but the title search reveals that there is a lien on the property. This means that the previous owner owes money to a creditor, and that creditor has a legal claim on the property. Before the sale can go through, the lien must be cleared.

Another example: In some cases, there may be errors or discrepancies in the property's title, such as a misspelled name or an incorrect legal description. These issues must be resolved before the property can be sold or transferred.

Both of these examples illustrate how title clearance is necessary to ensure that a property can be bought or sold without any legal complications or disputes.