Definition
A cloud on title is any claim or issue raising doubt about the seller's clean ownership. Examples include unreleased mortgages or judgment liens.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
A cloud on title is a specific type of title defect that raises questions about ownership or creates doubt about the seller's authority to sell. Examples include a mortgage that hasn't been formally released, a judgment lien against a prior owner, or an undisclosed easement. Clouds on title must be cleared through legal action, lender releases, or other corrective measures. If a cloud cannot be cleared, it will typically be excepted from the title insurance policy.
Pro Tip
Don't close until clouds on title are completely cleared.
Example
The cloud on title was created by a previous mortgage that wasn't properly released in the records.