Escrow & Title
A 'cloud on title' is:
AA designation for a property in a flood hazard zone
BAny outstanding claim, lien, or encumbrance that may impair or challenge the owner's title✓ Correct
CA zoning classification for commercial properties
DA notation in the MLS indicating the listing is under contract
Explanation
A cloud on title is any outstanding claim, lien, encumbrance, or condition that might impair the owner's title or interfere with a sale. Clouds can be removed through a quiet title action or by obtaining releases from claimants.
Related Arkansas Escrow & Title Questions
- Chain of title refers to:
- A subordination agreement allows:
- Proration at closing refers to:
- In an escrow closing, the escrow agent's primary duty is to:
- A general warranty deed provides the grantee with the strongest protection because it contains the grantor's covenant to:
- A title search is performed to:
- The chain of title refers to:
- In a race-notice jurisdiction like Arkansas, a subsequent purchaser who records first AND has no notice of a prior unrecorded deed wins. This means:
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