If you’re buying a Minnesota home or property, you may find yourself encountering all kinds of interesting new terminology. You may hear your real estate agent mention the need for a “clear title.” But what exactly is a clear title and how does it affect the sale or purchase of your property?

 

At Liberty Title in Minnesota, we’re experienced at helping Minnesota home buyers through the closing process and offer complete title services. From title abstract services to title insurance, we’re there throughout the process. That’s why we’ve put together this helpful guide to explain some of the key characteristics of a clear title.

 

What is a Clear Title?

Put simply, a clear title means the title of a property is owned outright and has no liens from creditors. It does not have a mortgage, and no one can place a claim against it. That means the owner is the sole owner and their ownership of the property is completely undisputed. In order to sell a property, it must have a clean title or at least a marketable title. A clear title is sometimes also known as a perfect title.

 

Characteristics of a clear title:

 

1.      There are No Boundary Problems

A boundary dispute interferes with a clear title. In order for a title to be clear, any existing disputes over boundaries must be cleared up. This is something that may come up during the creation of the title commitment and could be resolved by our title abstract agents.

 

2.      The Property is Free of Tenants

A title cannot be considered clear if there are tenants living in the home or on the property. The home must be completely free of tenants in order to sell. In order to be clear, the tenants would need to evacuate the premises.

 

3.      It is Free of Encumbrances

An encumbrance against a property can be caused by the unpaid debt of a property owner. These are often known as liens. A lien needs to be completely discharged before the title is declared clear. Another encumbrance is an easement. An easement allows a neighboring property owner access to the property. On exception to this is the commercial easement for a utility, which does not usually restrict the title.

 

 

 

Connect with Our Minnesota Title Insurance Company

Whether you’re purchasing your first home or investing in a commercial property, it’s important to have a strong title insurance company behind you. Our team of loan officers and title insurance agents at Liberty Title is here to help.

 

With in-house legal support and closing services, we can help you make sure your title is ready to go so your purchase goes off without a hitch. Call our title closing team at 763.494.0340, or contact us to find out more about how we can help you through your real estate purchase.