Minnesota Real Estate Exam Practice Test 2025 – Complete Prep Guide

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Question: 1 / 400

Which condition can lead to a clear title?

Outstanding liens on the property

A comprehensive title search confirming no encumbrances

A comprehensive title search confirming no encumbrances is essential to achieving a clear title because it involves a thorough investigation of the property's history and the current status of its ownership. This process ensures that there are no outstanding debts, claims, or legal rights attached to the property, such as liens or easements, that could affect ownership.

When any issues are identified during the title search, such as liens or disputes, they must be resolved before a clear title can be established. If the title search confirms that there are no encumbrances—meaning no legal claims or restrictions that could interfere with the owner's rights—then the title is considered clear. This clear title is crucial for providing assurance to potential buyers and lenders, as it indicates that the property is free from any legal disputes or financial claims that could hinder ownership.

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Disagreements between property owners

Pending court cases regarding property boundaries

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