Quick Answer
A cloud on title is a claim, document, lien, or discrepancy that creates uncertainty about ownership of real property. Removing a cloud may require a release, corrective document, affidavit, probate proceeding, payoff and satisfaction, court order, or quiet title action, depending on the nature of the cloud and applicable state law.
The term "cloud on title" sounds abstract, but it refers to something very concrete: a recorded document or claim that, if valid, would affect someone's ownership of real property. The cloud does not need to be valid to be a problem. It only needs to create uncertainty.
Examples of Clouds on Title
- An unreleased mortgage or deed of trust from a loan that was paid off
- A judgment lien against a prior owner that was never satisfied
- A deed that was improperly executed, notarized, or delivered
- A recorded claim of ownership by someone who does not actually own the property
- A tax lien that was paid but the release was never recorded
- A prior deed with an incorrect legal description
- A missing spouse's signature on a deed from a prior transaction
How Is a Cloud on Title Removed?
Release or Reconveyance
If the cloud is a satisfied mortgage that was never released, obtaining and recording a release or reconveyance from the lender clears the cloud. Learn why an old mortgage may still show on title.
Corrective Instrument
If the cloud is an error in a prior deed, a corrective deed or other corrective instrument may resolve the issue. Learn about corrective deeds.
Probate or Heirship Affidavit
If the cloud involves a deceased owner's interest, probate proceedings or an affidavit of heirship may clarify ownership. Learn what happens when an owner dies before selling.
Affidavit of Facts
In some cases, an affidavit explaining the facts may be sufficient to remove a cloud, particularly when the affiant has personal knowledge of the circumstances.
Quiet Title Action
When the cloud cannot be resolved through voluntary documents, a quiet title action may be necessary. This is a lawsuit asking the court to determine ownership interests and clear the title. Learn what a quiet title action involves.
Is a Cloud Automatically a Valid Claim?
No. A cloud on title does not have to be valid to create a problem. An old, expired, or even legally invalid document may still appear in the public record and create uncertainty. The title company and its underwriting department evaluate whether the cloud can be ignored, must be removed, or can be insured over.
FAQs
Can a cloud on title be removed without filing a lawsuit?
Yes, many clouds can be removed through voluntary curative documents without court involvement. A quiet title action is typically a last resort when voluntary resolution is not possible.
How long does it take to remove a cloud on title?
It depends on the type of cloud and the method of removal. A simple release may take days. A quiet title action can take months. Learn how long curing title defects typically takes.
Does title insurance cover clouds on title?
An owner's title insurance policy may cover financial loss from certain clouds on title that were not known or excepted at closing. Known clouds are typically listed as exceptions. Learn what an owner's title insurance policy covers.