Property Ownership
In NJ, which of the following would constitute a 'cloud on title' that should be resolved before closing?
AA recorded easement that all parties know about
BA judgment lien against the seller that has not been satisfied or discharged✓ Correct
CAn MLS listing that has expired
DA building permit that has been issued
Explanation
An outstanding, unsatisfied judgment lien against the seller is a cloud on title that must be resolved (paid off and discharged) before the seller can convey clear, marketable title to the buyer.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
EasementA non-possessory right to use another person's land for a specific purpose.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Math Concepts
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