{"ok":true,"canonical_url":"https://dealroom.so/glossary/proof-of-clear-title","api_url":"https://dealroom.so/api/public/glossary/proof-of-clear-title","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"proof-of-clear-title","term":"Proof of Clear Title","group":"People and paperwork","definition":"Documentation demonstrating that the seller legally owns assets free and clear of any undisclosed liens or encumbrances. This is critical for ensuring you receive what you're paying for.","what_it_means":"For assets like real estate or significant equipment, your lender will require a title search to confirm clear title and establish their first lien position. For other business assets, UCC lien searches are performed to ensure no prior claims exist, protecting your investment and the bank's collateral.","url":"https://dealroom.so/glossary/proof-of-clear-title","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"lien-search","term":"Lien Search","url":"https://dealroom.so/glossary/lien-search"},{"slug":"first-lien","term":"First lien","url":"https://dealroom.so/glossary/first-lien"}],"related_questions":[{"question":"What happens if a buyer fails to provide proof of their required equity injection by closing?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-buyer-fails-to-provide-proof-of-their-required-equity-injection-by-closi"},{"question":"What proof of insurable interest must a business provide when applying for life insurance on an employee?","url":"https://dealroom.so/sba-7a/questions/what-proof-of-insurable-interest-must-a-business-provide-when-applying-for-life-insurance-"},{"question":"If I sell personal stock investments for my down payment, what proof of source will the lender require?","url":"https://dealroom.so/sba-7a/questions/if-i-sell-personal-stock-investments-for-my-down-payment-what-proof-of-source-will-the-len"},{"question":"What proof do I need to show for the source of my down payment funds for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-proof-do-i-need-to-show-for-the-source-of-my-down-payment-funds-for-an-sba-7-a-loan"},{"question":"What are the SBA's lien requirements for a 7(a) loan when the collateral includes titled vehicles?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-lien-requirements-for-a-7-a-loan-when-the-collateral-includes-titled-ve"},{"question":"What are the specific requirements for securing a lien on titled vehicles as collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-securing-a-lien-on-titled-vehicles-as-collateral-fo"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Proof of Clear Title","url":"https://dealroom.so/glossary/proof-of-clear-title","source_type":"DealRoom Data"}}