What is the difference between a clear title and a clean title?
Asked by: Dr. Kelli Olson | Last update: June 5, 2025Score: 4.9/5 (70 votes)
Is a clear title the same as a clean title?
A clear title, also known as a “clean title,” is a property title that is free from liens or additional issues that could jeopardize ownership, such as boundary disputes (encroachments) or easements. With a clear title, there's no doubt who the owner of the property is, or who can claim legal ownership of the property.
What makes a title clear?
A clear title is a title without any type of lien or levy from creditors or other parties that would pose a question as to legal ownership. For example, an owner of a home with a clear title is the sole undisputed owner, and no other party can make any kind of legal claim to its ownership.
What does a clean title mean?
A clean title is simply a title that an insurer or state has never changed. It's not another type of branded title; it simply means that the vehicle has never been deemed a total loss. With a clean title, the car does not have a lien placed on it and has slightly higher resale value.
Should I buy a car with a clean title?
While they cost more than cars with a salvage title, clean titles are more reliable and could cost you less in the long term since you won't have to pay for expensive repairs to get your vehicle considered legal. Lastly, clean title cars are far safer than ones with a salvage title, as mentioned above.
What Does Clean Title and Clear Title Mean
How to get a clear title on a car?
For most Americans, your lender will possess the title for the duration of the loan. When your loan is paid off, your lender will send the lien release to the DMV. The DMV or other state office will then send the updated title to you. This process can take longer than in a title-holding state.
What are the three types of titles?
- Clear/clean: A vehicle with no liens has a clear title.
- Lienholder: The car you purchased with a loan has a lienholder title until you repay the borrowed money.
- Electronic: Your DMV may hold a digital version of a car's title for efficiency.
Why do people ask for a clean title?
Buying a used car from a private party involves a higher level of risk for the new owner. Understanding and confirming a car's clean title status can help ensure you get the best car for your needs while paying a price that reflects the car's history and condition.
How do you prove a title is clean?
The easiest way to verify that you have a clean title on your car is to locate your physical certificate of title, which should have been given to you when you purchased the vehicle. If the physical title states that it's clean, then that is typically all the verification you need.
Can you close on a property without clear title?
In California, for example, the document of choice is a grant deed. When a seller signs over the house using a grant deed, they are making an implied guarantee that the title is good. Even if the buyer is willing to close, a cloud on the title can come back to bite the seller. Buyer Beware.
How do I know if my car title is clear?
To help identify potential title issues, used car buyers can purchase a report from CARFAX or AutoCheck. Car buyers can also research a vehicle's title by accessing iSeeCars' free VIN Check tool.
What color is a clear title?
In most other states, a green title is a clean or clear title that functions like the Texas blue title. Pink or Purple Title: Blue is not the only color associated with salvage title vehicles.
What is meant by clear title?
According to Investopedia: "A clear title is a title without any kind of lien or levy from creditors or other parties and poses no question as to legal ownership. For example, an owner of a car with a clear title is the sole undisputed owner, and no other party can make any kind of legal claim to its ownership."
What is evidence of a clear title?
In majority of states , a clearly established title by adverse possession is considered to have clear title. Additionally, a party wishing to remove a cloud on their title can do so by pursuing an action to quiet title .
Is a certificate of title a clean title?
A certificate of title is not a guarantee of a free and clear title. There may be unrecorded encumbrances and liens, incorrectly recorded information, or fraudulent activity that are simply unknown.
Is clean and clear title the same?
Clean Title: Indicates that the car is in good condition and has not suffered severe damage or been deemed a total loss by an insurance company. Clear Title: This means there are no financial liens or legal disputes concerning the vehicle's ownership.
Does clear title mean clean title?
Clear/clean
A clear or clean title is issued when a vehicle doesn't have an outstanding loan on it. These terms may also refer to a vehicle that has never been declared a total loss.
What is the benefit of a clean title?
A clean title provides clear evidence that the person selling the car is the rightful owner. You're not purchasing a vehicle that could be claimed by someone else due to unresolved legal or financial issues. Smoother transactions. Buying or selling a car with a clean title is typically straightforward.
What is the best title for a vehicle?
Clear title: This states that the vehicle has no outstanding financial burden of any kind that would prevent it from being sold. It is the most desirable car title, and in many cases, the only one that makes you eligible for a car loan.
Does clean title mean no accidents?
A clean title suggests that the vehicle you are hoping to purchase has never been in an accident so significant that it was deemed as a total loss. However, it does not mean that the vehicle has never been in an accident at all. It is important to note that a clean title does not mean a lack of problems.
What is the most common form of title?
The most common of these methods of title holding are joint tenancy, tenancy in common, tenants by entirety, sole ownership and community property. Joint Tenancy is when two or more people hold title to real estate jointly, with equal rights to enjoy the property during their lives.
What is a clear title type?
Legal Ownership
A clear title means the vehicle's ownership is undisputed, making it legally available for sale. This assures potential buyers that there will be no claims from creditors or challenges from previous owners, facilitating a smoother transaction process.
How much does it cost to clear a title?
Title company charges can vary but typically include a title search fee ($150-$300), a closing fee ($1650-$2500), title insurance (around $575 for a lender's policy and $1950 for an owner's policy on a $200,000 home), and additional fees ($200-$500).
How do you check if a vehicle has a clear title?
Visit the National Motor Vehicle Title Information System (NMVTIS) website, vehiclehistory.gov, to get a vehicle history report with title, insurance loss, and salvage information. This site lists NMVTIS-approved providers of vehicle history reports.