Escrow & Title
Which of the following BEST describes a 'cloud on title'?
AA property that has no outstanding liens
BAn outstanding claim or encumbrance that may affect the owner's clear title✓ Correct
CA title held jointly by multiple parties
DA deed that has been recorded with the county
Explanation
A cloud on title is any claim, lien, encumbrance, or defect that affects the validity or marketability of title to real property. Examples include unresolved mechanic's liens, recorded judgments, or errors in a prior deed.
Related Arkansas Escrow & Title Questions
- TRID disclosures apply to which of the following loan types?
- The purpose of title insurance in real estate is to:
- A 'wild deed' is a deed that:
- FIRPTA (Foreign Investment in Real Property Tax Act) requires that when a foreign person sells U.S. real property:
- Which type of foreclosure does NOT require court proceedings in most cases?
- A property owner who believes their property was overassessed by the county assessor may:
- Proration at closing refers to:
- In Arkansas real estate closings, who typically disburses closing funds and records the deed?
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →