Escrow & Title

In Hawaii, a 'cloud on title' means:

AA. The property has been damaged by volcanic activity
BB. A defect, encumbrance, or claim that may affect the quality or ownership of title✓ Correct
CC. The title insurance has expired
DD. The property has multiple owners

Explanation

A cloud on title is any outstanding claim, lien, or encumbrance that may affect the validity or marketability of title, requiring resolution before the property can be conveyed free and clear.

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