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What is a cloud on the title? A cloud is any condition that affects the clear title to real property.

I have seen many different examples of title defects in my years of practicing real estate. Properties that were held 1/2 in trust and 1/2 by an LLC. Where the previous sale only transferred 1/2 of the property even though both the trust and the LLC were the same person. Septic systems on the neighbor’s property. Mortgages that have been re-financed 6 times but the discharges were not recorded properly. Floor plans on condominiums not recorded with the declaration. Whole condo communities where the deeds are not properly referencing the unit we are selling. The list goes on and on.

Clouds come in many forms

As you can see there are various types of clouds that can affect a title’s marketability. Many title companies are willing to do a preliminary title abstract prior to listing your home for sale. This will often come up with the most glaring title defects so that they can start correcting them immediately.