Escrow & Title

A cloud on title is best described as:

AA rainy-day provision in a deed
BAny encumbrance, claim, or defect that makes the title unmarketable✓ Correct
CA type of title insurance exclusion
DA government lien for unpaid assessments

Explanation

A cloud on title is any outstanding claim, lien, or defect in the chain of title that casts doubt on ownership or may impair the marketability of title.

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