Do you know what “Cloud on the Title” means?
Generally when you hear these words, there is no need to panic.
The definition of a “cloud” is an apparent outstanding claim on the title to a real property. This could mean a lot of different things, such as an example Marriage, Death, Mechanic’s lien, Tax liens, or a mortgage not re-conveyed.
Most likely when we see a loan not being re-conveyed it is an indication of a situation, where the seller was the “lender” and after a buyer paid off the loan, the seller failed to go and record that the loan has been paid in full.
Here are a few examples of clouds on the title:
Marriage: where a single person is selling or mortgaging the property and the title search reveals that there are two people on the deed and it says they are married.
Many times the “cloud on the title” can be removed by the courts. This we call a motion to file a “quite title action”. This is done by the execution and recording of a valid deed or by providing documents that a dept has been paid.
Here in California you as the buyer can rest assured that until the “cloud” is removed you cannot close the sale. The Title Company & the Escrow Company will make sure that you get “clear title” or you can not close the deal.
If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Playa Vista, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or email me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations
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