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What does “ It will be sold on a title” in regards to an automobile coming up for auction actually mean? 
is that going to be a free and clear title or a piece of paper that will create a slew of problems?

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I've never seen that terminology before.  If your question applies to a specific upcoming auction, it might be worthwhile to contact the auctioneer for clarification.  You can also see if other auction houses use that wording and ask them.  This way you won't tip your hand if you're planning to bid on the item.

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I have seen where it is stated that it will be sold on clear title. Along those same lines I have seen it say will be sold on bill of sale only. I take it to mean that the car in question does indeed have a title, and it should be free and clear. Likewise being sold on bill of sale only the car will not have a title.

I would check with the auction house ahead of time to be perfectly clear if it was a vehicle I was planning on bidding.

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"Sold on a title" has a Nigerian ring to it. In any context the use of an uncommon term where the common term is straightforward will make me question the meaning.

 

Overly explicit descriptions can be equally suspicious. Nothing more deceitful than letting a person make their own assumptions.

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While I can't say I've seen that exact phrase, it wouldn't be surprising if it has been used before and more than once in auction descriptions.

Also, instead of asking about it here from random strangers and as suggested by @Harold, I would contact the auction house directly for any necessary clarification concerning their listing(s).

Is the subject in question by chance something that normally wouldn't be sold on/with a title, like a race car, for example ?

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It might mean that the car has a title and not just a "registration" like all cars before 1972 in New York State. It probably is a lot safer having a title proving ownership rather than just a piece of paper stating that the car is "registered". Before 1972 a registration was the only thing we had in NY and a lot of underhanded stuff could be done with just that little piece of paper!  I don't know how many other states didn't issue a title, but I'm guessing NY wasn't the only state. 

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