cloud on title
Also found in: Legal, Wikipedia.
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. See: bad title.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Cloud on Title
Any claim to the title on a property that puts another claim into question. That is, one may own a property that another person claims with some (though by no means clear) legal justification. Clouds on title normally arise in the sale of a property when a buyer or real estate broker is conducting due diligence.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
cloud on title
Something that appears on its face to constitute a defect in title or a claim against property, but which may be cleared through the execution of affidavits, quitclaim deeds, or corrective deeds,or by means of a lawsuit called an action (or bill) to quiet title.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.