"Cloud on title" exists on the title to the property if any outstanding claim affects your title to the land.
Example: Suppose you have been informed that the ownership of your sea-beach property is no longer valid due to an earlier deed on the same. This implies that someone has challenged your ownership of the property. This condition is referred as "Cloud on title".
The cloud on your title can be removed through court proceeding which can establish that you are the actual owner of the land.
"Cloud on title" differs from the [b:6ed2a9033b]"Color of title"[/b:6ed2a9033b] or the "Apparent title". The "Color of title" occurs when any fact appears in support of the claim of title to a property but fails to establish the ownership in legal terms. A "Color of title" occurs in the form of writing. The legal document gives a description of the land involved in the "Color of title".
For example, suppose that you have purchased a property for investment purposes and you know that you have got a valid title. But later on, you find that the previous owner's title handed over to generations has some defects due to which the "Color of title" has occurred.