an actual or apparent outstanding claim on the title to real property. "Clouds"
can include an old mortgage or deed of trust with no recording showing the secured
debt was paid off, a failure to properly transfer all interests in the real property
(such as mineral rights) to a former owner, a previous deed which was improperly
written or signed, an unresolved legal debt or levy by a creditor or a taxing authority,
or some other doubtful link in the chain of title. Often the "cloud" can be removed
by a quiet title action, by finding a person to create or execute a document to
prove a debt had been paid or corrected. Title companies will refuse to insure title
to be transferred with a "cloud," or they will insure ownership except for ("insure
around") the "cloud. "
See also chain of title deed of trust mortgage quiet title action reconveyance
title title report
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