In property law, the term free and clear refers to ownership without legal encumbrances, such as a lien or mortgage.[1] For example: a person owns a house free and clear if he has paid off the mortgage and no creditor has filed a lien against it.
Lately there has been a resurgence in interest for free and clear properties despite being an investment form that has been prevalent from early on. Investing in free and clear properties removes the need for a bank loan entirely.[citation needed] Over 35% of all properties in the United States are owned free and clear with no outstanding mortgages or liens.[citation needed]
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References edit
- ^ Black, Henry Campbell (1995). A Law Dictionary Containing Definitions of the Terms and Phrases of American and English Jurisprudence, Ancient and Modern ... The Lawbook Exchange, Ltd. p. 523. ISBN 978-1-886363-10-6.
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