Escrow & Title
A 'cloud on title' refers to:
AA property's location in a designated flood zone
BAny outstanding claim, lien, or encumbrance that may impair the owner's title✓ Correct
CAn easement granted to a neighboring property owner
DA deed restriction limiting property use
Explanation
A cloud on title is any claim, lien, or encumbrance that may affect the validity or marketability of a property's title, such as an unresolved judgment lien or improperly executed deed.
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