Which of the following indicates that a property's title is free and clear of all judgments, liens, loans, or actions at the moment preceding the funding of the new loan?

Indefeasible title signifies that a property’s title is free and clear of all judgments, liens, loans, or actions prior to the funding of a new loan. This type of title provides the owner with absolute ownership rights, ensuring that no other parties possess claims against the property. The concept is essential in real estate transactions, especially when obtaining financing, because it provides assurance to lenders that they will have a clear claim on the property in case of default.

In real estate, having an indefeasible title assures both buyers and lenders that the property can be used as collateral without the risk of being encumbered by other financial obligations. This clarity helps streamline the refinancing or purchase process, as stakeholders can confidently proceed knowing there are no hidden claims against the property.