Property Ownership
In Colorado, 'cloud on title' refers to:
AA. A perfect title with no defects
BB. Any claim, lien, encumbrance, or defect that may impair the clarity of title and make it difficult to sell or finance the property✓ Correct
CC. Rainy weather at the time of closing
DD. An ILC showing improvements near boundary lines
Explanation
A cloud on title is any claim, recorded encumbrance, lien, easement, or apparent defect that may impair the owner's ability to demonstrate clear title. Common clouds include unresolved old mortgages, mechanic's liens, judgment liens, boundary disputes, or missing heirs' claims. A quiet title action may be necessary to remove a serious cloud.
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