Escrow & Title
In a title search, a 'cloud on title' refers to:
AA property with an ocean view
BAny document, claim, or encumbrance that may impair the title✓ Correct
CA property in a flood zone
DA title with no encumbrances
Explanation
A cloud on title is any document, claim, lien, or encumbrance that casts doubt on the validity of the title and may need to be resolved before the property can be sold.
Related Alabama Escrow & Title Questions
- If a property owner fails to pay property taxes in Alabama, the state may eventually acquire the property through a process called:
- Constructive notice is provided by:
- Which type of title insurance policy protects the lender in an Alabama real estate transaction?
- Proration of property taxes at closing means:
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- A quitclaim deed conveys:
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- Which document transfers title from seller to buyer in a real estate transaction?
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