Cloud on Title

Definition: A cloud on title is an apparent claim, defect, or encumbrance that creates doubt about ownership or the ability to convey clear title.

Example

A recorded deed contains an unresolved defect that raises a competing ownership claim.

Keep the distinction clear

A claim need not ultimately succeed to create a cloud. Also, not every disclosed and accepted easement prevents a sale; the particular title issue and contract terms matter.

Related terms

Marketable Title · Title Search · Encumbrance

Keep studying

Deeds, Abstracts, Title Opinions, and Title Insurance

References: Cornell LII: cloud on title

Pronunciation (US): KLOWD on TYE-tuhl (capitals show stress)

Pronunciation reference: Merriam-Webster