Cloud on title
Any claim, lien or error in the records that casts doubt on who owns a property. It usually must be cleared before the sale can close.
Also called: title defect, title issue, clouded title
Related terms
The legal right to own and use a property. Title is not a single document; it is shown by the deed and public records, and must be clear for a sale to close smoothly.
A review of public records to confirm who owns a property and find liens, easements, judgments or other problems. Its results go into the title commitment before closing.
A deed that transfers whatever interest the signer has, if any, with no promise that the title is good. It is common between family members, in divorces or to fix title errors, not in typical sales.
A legal claim against a property that secures a debt, such as a mortgage, unpaid taxes or contractor bills. Liens generally must be paid off or released before the property can be sold with clear title.
A claim against a property filed by a contractor or supplier who was not paid for work or materials. It must usually be paid or released before the property can sell with clear title.