What is a cloud on title?

A cloud on title refers to any claim or encumbrance that affects the clear ownership of a property. This can include various interests such as liens, easements, or other legal claims that may not be resolved or could potentially challenge the ownership rights of the property. When there is a cloud on title, it creates ambiguity regarding who has legal rights to the property, which can complicate transactions, financing, or property transfers. Clearing the cloud typically requires resolution of the disputed claim or the removal of the encumbering interest, ensuring the title is clear for the current or prospective owners.

The other options suggest issues related to property that do not capture the essence of a cloud on title. For example, improvement disputes or structural defects pertain more to physical conditions of the property rather than legal claims affecting ownership. And while a tenant's legal right to occupy a property is an important aspect of property law, it does not relate to the concept of encumbrances affecting ownership absence.