Escrow & TitleIntermediateDelaware Exam

A cloud on title refers to:

AA clean and unencumbered title
BAny claim, lien, or encumbrance that may impair the owner's titleCorrect
CDigital title records stored in the cloud
DA title transferred through an electronic platform

Why Any claim, lien, or encumbrance that may impair the owner's title Is Correct

Answer B: Any claim, lien, or encumbrance that may impair the owner's title

A cloud on title is any outstanding claim, lien, encumbrance, or defect that makes the title uncertain or unmarketable. A title search and quiet title action may be needed to resolve it.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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