Property Ownership

In Michigan, a 'cloud on title' is best described as:

AA digital encumbrance in electronic land records
BAny claim, lien, or encumbrance that could impair marketable title✓ Correct
CA temporary zoning restriction on the property
DAn unrecorded easement that runs with the land

Explanation

A cloud on title is any outstanding claim, lien, encumbrance, or defect in the chain of title that casts doubt on the owner's clear title and may affect marketability. Clouds must typically be cleared before a sale can close.

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