Escrow & Title
A 'cloud on title' refers to:
AA title insurance policy that covers weather damage
BAny outstanding claim, lien, or encumbrance that may affect the owner's clear title✓ Correct
CA surveying error on the plat
DA deed recorded in the wrong county
Explanation
A cloud on title is any document, claim, lien, or encumbrance that appears in the chain of title and may cast doubt on the owner's clear title. Common clouds include improperly released mortgages, judgment liens, or disputed boundary claims.
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