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
CTitle held in a trust
DA property with multiple owners
Explanation
A cloud on title is any claim, lien, encumbrance, or outstanding interest that may impair or invalidate the owner's title. Examples include unresolved liens, easements, or adverse claims. A title search is performed to identify and clear clouds on title.
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