Escrow & Title
A title search in Arizona reveals a 'cloud on title.' This means:
AThe property is located in a flood zone
BThere is an outstanding claim, lien, or encumbrance that may affect the validity of the title✓ Correct
CThe title insurance company has denied coverage
DThe property has an undisclosed HOA
Explanation
A cloud on title is any outstanding claim, lien, encumbrance, or other matter that may impair the owner's clear title. Examples include unreleased mortgages, unsatisfied judgment liens, and disputed boundary lines.
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