Clear Title

A clear title means no outstanding liens, loans, or legal claims are attached to the vehicle. The seller has full legal authority to transfer ownership. Clear title is distinct from clean title: clean refers to the absence of damage history; clear refers to the absence of financial encumbrances.

Dealers must confirm both clean and clear title status before any acquisition. A vehicle with an open lien cannot be transferred until the lienholder is paid off. Failing to identify an existing lien before retail sale creates significant legal and financial liability for the store.