Question

Which title is a property title that is considered free from defect and therefore the possibility of litigation is eliminated but even though there may still be encumbrances on the title it is one of which the parties are aware, such as a lien or an easement?

Answer 1

A clear title is a property title that is free from defects and eliminates the possibility of litigation. It can still have encumbrances like liens or easements, but they are disclosed and acknowledged by the parties involved.

Step-by-step explanation:

The title that is considered free from defect and eliminates the possibility of litigation, but may still have encumbrances that the parties are aware of, is known as a clear title.

A clear title means that there are no significant legal issues or disputes regarding ownership of the property. However, there may still be encumbrances such as liens or easements, which are disclosed and acknowledged by the parties involved.

For example, if a property has a lien against it for unpaid debt, the lienholder has a legal claim on the property until the debt is paid off. Even though there is an encumbrance on the title, it is a known fact and does not affect the overall clarity of the title.