Definition: Commonly describing property without outstanding mortgage debt or liens; the intended meaning should be confirmed in the transaction context.
Example
An owner pays off the mortgage and obtains the appropriate recorded satisfaction.
Keep the distinction clear
Debt-free property can still be subject to easements, restrictions, or other title matters. Do not assume the phrase guarantees perfect title or the absence of every encumbrance.
Related terms
Satisfaction of Mortgage · Encumbrance · Marketable Title
Keep studying
Deeds, Abstracts, Title Opinions, and Title Insurance
References: California DRE: real estate glossary
Pronunciation (US): FREE and KLEER (capitals show stress)
Pronunciation reference: Merriam-Webster
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