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A cloud on a title could be removed by quitclaim deed.

What Is a Cloud on Title?

A cloud on title is any document, claim, unreleased lien, or encumbrance which may invalidate or impair a title to real property or make the title doubtful.

What are the factors that cause a cloud on title?

A cloud on title is typically caused by unresolved property issues. For example, foreclosure proceedings initiated by a mortgager in response to a borrower's failure to make a payment may prevent the delinquent borrower from selling the property to a third party while the foreclosure is ongoing.

Liens from lenders or contracts to which the landowner agreed may exist on the property. If a property owner owns the important estate free and clear, they can use it as collateral for new financing to cover other expenses or debts. A lien may be placed on the property until the debt is repaid in this case.

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