Which of the following best describes a cloud on title?

A cloud on title refers to any claim or interest that may affect the ownership or marketability of a property title. This typically arises when there are unresolved issues or encumbrances, such as liens, mortgages, easements, or judgments that can create uncertainty about the true ownership of the property. Such claims can make it challenging to sell or finance the property, as potential buyers or lenders may be wary of any competing claims.

Understanding this concept is crucial in title insurance and real estate transactions because sellers must provide clear title to ensure a seamless transfer of property ownership. A cloud on title must be resolved for the title to be deemed marketable, reinforcing the importance of thorough title searches and the role of title insurance in mitigating these risks.