What is a “Cloud” on a Title?
What is a “Cloud” on a Title?
For property owners, especially those looking to sell or take out a mortgage on a property, hearing that there is a cloud on their title is bad news.
Anything that could affect clear ownership of a property qualifies as a “cloud” on that property. This might be a document, claim, unreleased lien, or other encumbrance.
Having a cloud on a title can make it difficult to sell because it creates uncertainty as to what a buyer is purchasing. Another term for having a cloud on a title is that it’s a faulty title because it may muddy up the property’s ownership.
One of the difficulties with a cloud on a title is that even a claim without a publicly recorded deed can potentially affect a property’s title. Questions about ownership can occur for any number of reasons.
Some of the reasons that a cloud on a title may exist:
- Improperly recorded deeds
- Multiple contracts on the property
- Errors regarding the property description or in public records
- Forgery
- Wills or other estate planning documents, even if not publicly recorded
The good news for property owners is that they have avenues to resolve these problems and can establish a clear and free title on their property.
How to Clear Clouds
Property owners can solidify their ownership by filing a suit, known as a quiet title action. This avenue releases any claims or interests others either have or may have on a property. Owners will need to establish that they’re the lawful owners of the property and disprove any contrary claims of ownership.
Ideally, property owners should verify they have a free and clear title to a property before they put a property on the market. The majority of property clouds are found during title searches.
Hire a Skilled Property Legal Team That Knows Texas
If you believe your property has any clouds on its title, a skilled Texas property law attorney can help. The attorneys at Manfred Law help Texas property owners resolve property issues. Call us at 713-547-5460 or contact us online to schedule your consultation.
