How to prove a property is free and clear?

[Sam Leon]

I have a property I am getting financing on, and I just got the loan commitment but with a few contingencies.

One of the contingencies is for me to submit proof that I own two other income producing properties free and clear.

Now one of those properties I had a mortgage on, and paid it off early.  So for that one I can submit a satisfaction of mortgage letter and that should be sufficient.

Another property I paid cash on, never had a mortgage, and I am scratching my head as to how I can prove it's free and clear.  I don't see anything I have that indicates it as such.  Now the settlement statement does say "CASH FROM BORROWER" and "CASH TO SELLER" so I am wondering if that's good enough, or is there some other document I am not thinking of.

Also curious is why they singled out two properties and didn't ask me for proof on other owned properties, did they do a search and missed some things?  Or they are not done?  But if they issued a loan commitment letter already with those specific contingencies, then I guess they are done.  Should I even bother to fully disclose the rest of my assets or just leave it be?

[Daniel Harrison]

I would also disclose all properties now.  Lenders know that free and clear properties can be difficult to pick up with just a credit report.  They will pull a report called MERS at the beginning of the process and again at the end to make sure you haven't purchased another property simultaneously.  Better to do aged all the conditions cleared now that the day of closing.