Cloud on Title

Sam · Last edited by Sam on Fri Oct 13, 2006 11:20 am

"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Example: Suppose you have been informed that the ownership of your sea-beach property is no longer valid due to an earlier deed on the same.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 "Color of title" 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.

Caron · Posted: Mon Dec 26, 2005 2:24 am Post subject: Conditions for cloud on title

Some of the conditions under which a cloud on title may exist on the title to your property are given below.

Type	You're buying a home from...


Marriage	A single woman or man, but the title search discloses that there are two names on the deed and it reveals that they're married.


Death	The children of a widowed woman who recently passed away, but there's no will on file that shows what she had further concern for her property.


Money Items	A seller who has not paid property taxes for the last 6 months. The search reveals that the county government has placed a lien on the property.


Divorce	A man who bought a home before getting married and later on he got divorced. In some states, the woman is entitled to 50% of the property, although she doesn't file suit.


Mechanic's liens	An owner who refuses to pay the company that has installed the new air conditioning system. The search discloses that the company has placed a lien on the property.

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