A cloud on title is best described as...

A cloud on title is best described as...

• A. A defect or claim affecting the title; cleared by quiet title action, release of lien, correction deed, or deed of reconveyance
• B. A mortgage lien
• C. A boundary dispute resolved by survey
• D. A tax lien that must be paid before transfer

Answer: (A)

A cloud on title refers to an outstanding defect or claim that affects the title and could prevent a clear, marketable transfer. Such issues create uncertainty about who actually owns the property and what encumbrances exist. To clear a cloud, common remedies include a quiet title action to affirm ownership and remove conflicting claims, a release of a lien if the lien is the problem, a correction deed to fix errors in the deed, or a deed of reconveyance to remove a lien or deed of trust once obligations are satisfied. A mortgage lien is simply an encumbrance that exists until paid or released and isn’t by itself a cloud on the title. A boundary dispute resolved by survey is a dispute that has been settled, so it no longer clouds the title. A tax lien must be paid before transfer, but that describes a lien, not the broader concept of a title defect or claim that clouds marketability.

A cloud on title refers to an outstanding defect or claim that affects the title and could prevent a clear, marketable transfer. Such issues create uncertainty about who actually owns the property and what encumbrances exist. To clear a cloud, common remedies include a quiet title action to affirm ownership and remove conflicting claims, a release of a lien if the lien is the problem, a correction deed to fix errors in the deed, or a deed of reconveyance to remove a lien or deed of trust once obligations are satisfied. A mortgage lien is simply an encumbrance that exists until paid or released and isn’t by itself a cloud on the title. A boundary dispute resolved by survey is a dispute that has been settled, so it no longer clouds the title. A tax lien must be paid before transfer, but that describes a lien, not the broader concept of a title defect or claim that clouds marketability.