Escrow & Title
A 'cloud on title' refers to:
AA lender's lien on the property
BAny claim, encumbrance, or defect in the title that may impair the owner's right to sell or mortgage the property✓ Correct
CUnpaid property taxes
DAn easement for utility lines
Explanation
A cloud on title is any outstanding claim, lien, or encumbrance that appears in the public record and may cast doubt on the validity or marketability of the owner's title. Examples include unresolved liens, boundary disputes, and forged deeds. A quiet title action may be filed to remove a cloud.
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