What Is A Clean Title

This means the current owner borrowed money to pay for them and didn t repay the total amount of the loan.

What is a clean title. Clear title is the phrase used to state that the owner of real property owns it free and clear of encumbrances. The clean title simply means the car was not deemed as a total loss by the insurance company while the branded title cars are cars experienced severe damages e g flood fire. For example a property may be encumbered by a mortgage. A clean title means that the car title has not been branded.

That doesn t necessarily mean the car is free of problems only that it has never been declared a total loss by an insurance company or found to be flood or fire damaged. It is also called marketable title or title that can be easily transferred or sold because of its lack of encumbrances. With a clean title a car might carry the balance of its new car warranty and has slightly higher resale value. For example an owner of a home with a clear title is the.

The phrase implies that ownership is not subject to claims by anyone but the person holding title. Insurance companies will insure a vehicle with a clean title for the amount of its value. What a clean title actually means the term in itself is misleading. In the section for brands on the title it will be empty.

In a more limited sense it is used to state that although the owner does not own clear title it is nevertheless within the power of the owner to convey clear title. A car with a clean title simply indicates that it has never been deemed a total loss otherwise known as a salvage car. A clean title means that there are no liens against the vehicle but it means more than that. A clean title is one you would receive in most cases when you purchase a vehicle.

Unencumbered or unrestricted legal ownership that is free from doubt as to its validity. In this article we ll take a look at the meanings of salvage title clean title and totaled cars.