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Cloud on Title
Practical Law Glossary Item 2-566-2593 (Approx. 3 pages)
Glossary
Cloud on Title
An actual or apparent outstanding claim or encumbrance that, if valid, would adversely affect or impair the owner's title to real property.
Clouds on title can include:
- An old mortgage or deed of trust that has been paid off, but there is no recording evidencing its satisfaction.
- A prior deed that was improperly prepared or signed.
- A failure to properly transfer all of the interests in the real property to a previous owner.
- A claim of rightful ownership to the real property by a third party.
- Unresolved tax liens or other liens encumbering the real property.