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Legal

Cloud on Title

Definition

Any claim, lien, or encumbrance that may impair the marketability of title.

Example

An old mechanics lien never released created a cloud on title that had to be cleared before closing.

Frequently asked questions

What does Cloud on Title mean in real estate?

Any claim, lien, or encumbrance that may impair the marketability of title.

How is Cloud on Title used in practice?

An old mechanics lien never released created a cloud on title that had to be cleared before closing.

This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.