Escrow & Title
A 'cloud on title' in New Mexico refers to:
AA lien that has been paid off
BA claim or encumbrance that may impair the owner's clear title✓ Correct
CA zoning restriction on the property
DWeather damage recorded in the chain of title
Explanation
A cloud on title is any outstanding claim, lien, or encumbrance that makes the title questionable or unmarketable. Clouds must be resolved (cleared) before a clean title can be conveyed.
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