Posted on: 08th Apr, 2004 10:11 pm
Clear title is a statement which implies that a property is free from any kind of lien or claim to the property-title.
Any lien associated with the title implies that no one has clear title to the property. However, in case of a mortgage transaction, a mortgage holder can release a mortgage if a certain amount of money is paid back. So a buyer having sufficient cash to satisfy both mortgage and the current owner can obtain clear title.
In mortgage deals, a clear title statement is issued after a title search is carried out on the property that is mortgaged. The title search makes sure that the property is free from past deeds, wills, and trusts. It reveals that the property has been transferred from one owner to another without any mortgage, lien or judgments left to be cleared.
A clear title cannot be issued if there is any defect in the title to the property. Such defects make ownership unquestionable and so they must be removed before issuing the clear title statement.
Any lien associated with the title implies that no one has clear title to the property. However, in case of a mortgage transaction, a mortgage holder can release a mortgage if a certain amount of money is paid back. So a buyer having sufficient cash to satisfy both mortgage and the current owner can obtain clear title.
In mortgage deals, a clear title statement is issued after a title search is carried out on the property that is mortgaged. The title search makes sure that the property is free from past deeds, wills, and trusts. It reveals that the property has been transferred from one owner to another without any mortgage, lien or judgments left to be cleared.
A clear title cannot be issued if there is any defect in the title to the property. Such defects make ownership unquestionable and so they must be removed before issuing the clear title statement.
When a morgage is paid up, should the morgage company send the owner a title for the prperty?
Hi Nedra!
As far as I know, once you pay off the mortgage, the lender will provide you with a Release Certificate and the deed which has your name on it.
Thanks,
Jerry
As far as I know, once you pay off the mortgage, the lender will provide you with a Release Certificate and the deed which has your name on it.
Thanks,
Jerry
Depends on what state your in, at the very least you should receive a letter stating the account is paid in full. In some states it may be required that they provide you with a copy of the note marked paid and/or a copy of the satisfaction/release. They don't send a deed or "title" to the property.