Property Ownership

In Minnesota, what is a 'cloud on title'?

AA notation in the title insurance policy
BAny claim, lien, encumbrance, or defect that affects the marketability of title✓ Correct
CA temporary restriction on the use of the property
DA discrepancy in the legal description

Explanation

A cloud on title is any outstanding claim, lien, encumbrance, or defect that may impair the owner's ability to convey clear title. Clouds may include unreleased old mortgages, judgment liens, boundary disputes, or errors in deeds. A quiet title action may be needed to remove a cloud on title in Minnesota.

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