Cloud on title

The term cloud on title refers to any irregularity in the chain of title of property (usually real property) that would give a reasonable person pause before accepting a conveyance of title. A cloud on title reduces the value and marketability of property because any prospective buyer aware of the cloud will know that they are buying the risk the grantor may not be able to convey good title. Often, the discovery of a cloud on title will provide the grantee a reason to back out of a contract for the sale of real property.

Examples of clouds on title include a property's address being misspelled in a deed conveying title, a mortgage lien whose repayment hasn't been officially recorded, a deed which has been signed but hasn't been properly recorded, an easement that has not been properly recorded, unpaid property taxes, a failure to transfer property rights (such as mineral rights) to a former owner of the property, and a pending lawsuit before a court of law over ownership to the property. A cloud on title is generally considered synonymous with a title defect.

The usual remedy for a cloud on title is to file a civil action to quiet title.

See also

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Look at other dictionaries:

  • cloud on title — cloud on title: an interest (as a lien) in real property that if valid impairs the owner s title compare quiet Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. cloud on title …   Law dictionary

  • cloud on title — Any claim or encumbrance, usually discovered in a title search, that may impair the title to a property, and make its validity questionable. Bloomberg Financial Dictionary See: bad title. Bloomberg Financial Dictionary * * * cloud on title ˌcloud …   Financial and business terms

  • cloud on title — An outstanding claim or encumbrance which, if valid, would affect or impair the title of the owner of a particular estate, and on its face has that effect, but can be shown by extrinsic proof to be invalid or inapplicable to the estate in… …   Black's law dictionary

  • 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… …   Investment dictionary

  • cloud on title — An outstanding instrument, record. claim unreleased encumbrance, or defectively executed deed in the chain of title, which superficially renders the title doubtful but is actually illegal or unenforceable for want of equity in enforcement and of… …   Ballentine's law dictionary

  • cloud on title — noun An encumbrance or claim on a title to real property (a deed) sufficient to interfere with title transfer until the problem has been resolved. Although the laws of a State cannot affect the equity jurisdiction of the Circuit Courts, when the… …   Wiktionary

  • cloud on title — a defect in the owner s title to a piece of land arising from a written instrument, a judgment, or an order of court purporting to create an interest in or lien upon the land and therefore impairing the marketability of the owner s title though… …   Useful english dictionary

  • removal of cloud on title — See cloud on title; quieting title …   Ballentine's law dictionary

  • bill to remove cloud on title — See cloud on title …   Ballentine's law dictionary

  • removable cloud on title — A cloud on the title to property which, although apparently valid, is in fact invalid. 44 Am J1st Quiet T § 11. removal. A moving of something. A change of residence. A change of domicil. Barstow v Stone, 10 Colo App 296, 52 P 48. A person s… …   Ballentine's law dictionary

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