Escrow & Title
A cloud on title is:
AA valid, clear title with no defects
BAny claim, lien, or encumbrance that affects the marketability of title✓ Correct
CA title insurance policy
DA recording error that has been corrected
Explanation
A cloud on title is any outstanding claim, lien, encumbrance, or other defect that makes the title questionable or unmarketable. Common examples include unpaid liens, boundary disputes, or unresolved probate issues.
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