Cloud on title - Wikipedia Cloud on title This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. ( May 2015 ) In United States property law, cloud on title or title defect 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. According to Investopedia, a cloud can be defined as : `` 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. '' Clouded title can thus be contrasted with a clear title, which indicates that a property is unencumbered. A cloud on title may 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. Some documents that affect title may be considered clouds, but nonetheless are unlikely to affect marketability or resale, such as with covenants, conditions and restrictions in a homeowner 's association or subdivision. Examples of clouds on title include a property 's address being misspelled in a deed conveying title, a mortgage lien whose repayment has n't been officially recorded, a deed which has been signed but has n'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. The usual remedy for a cloud on title is to file a civil action to quiet title which resolves the outstanding or unresolved cloud. See also Continuando Bare trust References Jump up ^ Staff, Investopedia ( 16 May 2007 ). `` Cloud On Title ''. Jump up ^ `` A Cloud On A Home ` s Title Can Make It Unmarketable ''. This legal term article is a stub. You can help Wikipedia by expanding it. Retrieved from `` https://en.wikipedia.org/w/index.php?title=Cloud_on_title&oldid=820761934 '' Categories : Property law Legal terminology stubs Hidden categories : Articles needing additional references from May 2015 All articles needing additional references All stub articles Talk About Wikipedia Add links This page was last edited on 16 January 2018, at 13 : 22. About Wikipedia

Question: a defect or a cloud on title of a property is best cured by
Answer: a civil action to quiet title which resolves the outstanding or unresolved cloud