An absolute title refers to a title to a property that is free of any deficiencies, encumbrances or competing claims.

There are various types of claims that can exist on a title such as prior mortgage, easements, liens, judgments, leases, spousal claims, etc.

As such, an absolute title means that an owner has unequivocal rights to the property and this status cannot be challenged by any party.

Sometimes also called as a clear title or perfect title, it is the type of title held by owners of unencumbered property.

In other words, there is no doubt as to who owns the property in question.

It must be noted however, that while all freehold property start with absolute title, not all properties with absolute title are freehold.

The reason why absolute title is important is that mortgage lenders will usually require a clear title, or claims waived by other parties, so that it will have absolute title for financing the property.

This is a critical factor should there be a need to foreclose the property in the future.

A house that lack a clear title is said to have a cloud on it’s title.