What must a broker verify about a property's title before closing?

A broker must verify that a property's title is clear and free of liens before closing because this is essential for ensuring that the buyer receives full ownership rights without any encumbrances. A clear title indicates that there are no outstanding debts or claims against the property that could affect the new owner's ability to use and enjoy their purchase.

When a title is free of liens, it means that there are no legal claims or holds on the property from creditors that would prevent the buyer from owning the property outright. This verification is crucial in protecting the buyer’s investment, preventing future legal disputes, and facilitating a smoother closing process.

In contrast, multiple ownerships might complicate the title situation but isn’t pertinent to the requirement of a clear title. Having an active mortgage does not necessarily indicate title issues; rather, it's a common part of property ownership that can be resolved. Lastly, the presence or absence of insurance coverage does not directly relate to the title's validity or clarity. Therefore, confirming that the title is clear and free of liens is a fundamental responsibility of the broker before the transaction can successfully complete.