Escrow & Title
A Washington title company discovers a 'cloud on title' affecting a property. A cloud on title is best described as:
AAn easement that benefits the property
BAny outstanding claim or encumbrance that may affect the property owner's clear title✓ Correct
CA notation that the property is in a flood zone
DAn expired deed restriction
Explanation
A cloud on title is any claim, lien, or encumbrance in the chain of title that casts doubt on the owner's clear ownership of the property. Clouds may include disputed deeds, old unsatisfied mortgages, judgment liens, or boundary disputes.
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