Cloud On Title


DEFINITION of 'Cloud On Title'

Any document, claim, unreleased lien or encumbrance that might invalidate or impair the title to real property or make the title doubtful. Clouds on title are usually discovered during a title search. Clouds on title are resolved through initiating a quitclaim deed or a commencement of action to quiet title.

BREAKING DOWN 'Cloud On Title'

A title search and title insurance are generally required by lenders as protection from any third-party claims, or clouds on title, to property that is used as collateral. Title searches and title insurance are required in the mortgage origination process.

  1. American Land Title Association ...

    A trade association representing the title insurance industry. ...
  2. Defective Title

    A piece of property or asset that has a publicly-recorded encumbrance, ...
  3. Abstract Of Title

    A brief history of the titles for a piece of land. The abstract ...
  4. Quiet Title

    A lawsuit filed to establish ownership of real estate when ownership ...
  5. Lien

    The legal right of a creditor to sell the collateral property ...
  6. Mortgage Broker

    An intermediary who brings mortgage borrowers and mortgage lenders ...
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