Escrow & Title
A cloud on title is best described as:
AA clear and marketable title free of defects
BAny claim, lien, or encumbrance that may impair the owner's title✓ Correct
CA completed title search with no defects found
DAn easement that benefits the property
Explanation
A cloud on title is any outstanding claim, lien, or encumbrance that casts doubt on the validity or marketability of the title. It must be resolved (often through a quiet title action) before the property can be conveyed with clear title.
Related Arkansas Escrow & Title Questions
- A deed must be signed by the:
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