Escrow & Title
A 'cloud on title' refers to:
AA property located in a flood zone
BAny claim, lien, or encumbrance that may impair the owner's title✓ Correct
CA property with an expired easement
DTitle held in a trust
Explanation
A cloud on title is any outstanding claim, lien, encumbrance, or other matter that could impair or call into question the owner's clear title to the property. Title searches are conducted to identify and clear such clouds.
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