Clearing
/ˈklɪərɪŋ/
Definitions
- (n.) The process of reconciling purchases and sales of securities, bills, or other instruments to ensure transfers of funds and ownership.
The clearing of the transaction was completed before settlement.
- (n.) In banking, the procedure by which banks settle accounts for checks drawn on each other.
The clearing of checks is handled daily by the clearinghouse.
- (n.) The process of removing encumbrances, such as liens or claims, from property titles before transfer.
The title company verified the clearing of all liens on the property.
Forms
- clearings
Related terms
See also
Commentary
In legal drafting, clarify the context of clearing—financial, banking, or property—to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.