Escrow & Title
A 'cloud on title' is best described as:
AA recorded deed with a valid transfer
BAn outstanding claim or encumbrance that casts doubt on the clarity of title✓ Correct
CA title insurance policy
DA lender's first mortgage on the property
Explanation
A cloud on title is any outstanding claim, lien, or encumbrance that may call into question the validity of the owner's title, such as an unresolved judgment or disputed boundary.
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