property
cloud on title
A cloud on title is any claim, document, or encumbrance that may impair the owner's title or make it unmarketable, such as an unreleased mortgage, a recorded lien that was paid but not cleared, a boundary dispute, or a missing heir's claim. Clouds are typically removed by obtaining a release, a quitclaim deed from the claimant, or a quiet title action in court.
- Exam tip
- A quitclaim deed or quiet title action is the classic cure for a cloud on title. Exams may describe a paid mortgage never released of record.
- Example
- A seller paid off a loan years ago, but the lender never recorded a satisfaction; the title company requires the release before closing.
Related terms & state variants
Sources
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Last verified: 2026-10-23