free and clear
Free and clear means owning property outright, without any debt, lien, or other encumbrance attached to it. The term is most commonly used in relation to real estate but can also apply to personal property such as vehicles or other goods. Property subject to a mortgage, loan, or lien is not owned free and clear. Once all such debts or claims are fully paid, satisfied, or released, the owner holds the property free and clear.
[Last reviewed in August of 2025 by the Wex Definitions Team]
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