Escrow & Title
A cloud on title in Iowa refers to:
ADigital recording errors in county records
BAny claim or encumbrance that affects the marketability of title✓ Correct
CA lien that has been fully paid off
DProperty located in a flood zone
Explanation
A cloud on title is any claim, lien, or encumbrance that impairs or casts doubt on the clear ownership of a property. It must be resolved—typically through a quiet title action—before the property can be sold.
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