What is required to ensure title is "clear" before a sale?

To ensure that a title is "clear" before a sale, conducting a title search is essential. A title search thoroughly examines public records to determine the legal ownership of a property and to identify any claims, liens, encumbrances, or other issues that may affect the property's title. This process helps to uncover any outstanding debts related to the property, such as mortgages or tax liens, as well as any disputes over boundaries or ownership rights.

A clear title is vital for both the buyer and seller to facilitate a smooth transaction. It assures the buyer that they are acquiring a property free of legal complications that could emerge after the purchase, and it protects the seller from potential future disputes related to ownership.

The other options provided do play roles in the real estate process but do not directly impact the clarity of the title. A signed contract formalizes the agreement between the buyer and seller but doesn't address title issues. A mortgage agreement pertains to financing the purchase rather than the title itself. Insurance policy documentation, such as title insurance, can protect a buyer from future title claims but does not clear the title prior to the sale; it simply provides coverage in case any issues arise post-purchase. Thus, conducting a title search is the critical step to ensure that the title