Cloud on title
Any claim, lien, or discrepancy that raises doubt about who owns the property or in what condition. Has to get resolved before a normal sale can close.
Your Room opens on this part of the sale, with the offer and everything before it already ticked.
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See how it worksWhere this comes up: under contract
Part 1 of 4
Why a seller cares
A cloud is anything in the records that makes ownership doubtful, and the buyer's lender will not close over one. The title search is what finds them, and clearing them is often the seller's job.
Part 2 of 4
A simple example
The title commitment shows a judgment lien against a former owner with the same name as you. It is not yours, but it clouds the title until it is cleared.
| The cloud | How it usually lifts |
|---|---|
| A judgment against somebody with your name | An affidavit that you are not that person |
| A mortgage paid years ago but never released | A release from the lender, found or reissued |
| An old easement nobody knew about | It stays; the buyer takes title subject to it, or negotiates |
Most clouds are paperwork, and most clear with paperwork. The ones that do not are the ones that delay a closing.
Part 3 of 4
What people get wrong
That a cloud means you do not own the home. Usually you do; the record just cannot prove it cleanly until the item is fixed.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines cloud on title in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.