What does "clear title" mean?

A "clear title" refers to a title that is free of liens and legal questions regarding ownership, confirming that the holder has full and rightful ownership of the property without any encumbrances. This means that there are no outstanding debts secured by the property or any other legal claims that might challenge the owner's rights. Having a clear title is essential for a smooth transaction, as it assures buyers and lenders that the property can be sold or financed without complications.

The other options do not accurately describe what a clear title entails. A title subjected to multiple claims indicates potential ownership disputes, while a title pending approval from a regulatory body or one that has been disputed in courts clearly suggests uncertainties surrounding ownership or legal standing, contradicting the definition of a clear title.