Eligibility of Unencumbered Properties Clause Samples

The 'Eligibility of Unencumbered Properties' clause defines the criteria that properties must meet to be considered unencumbered and thus eligible for inclusion in a transaction or agreement. Typically, this means the property must be free from liens, mortgages, or other legal claims that could affect ownership or transferability. For example, a property with no outstanding loans or legal disputes would qualify, while one with a pending mortgage would not. This clause ensures that only assets with clear, uncontested ownership are used, thereby reducing risk and providing certainty to all parties involved.