Cloud on Title Law and Legal Definition

Cloud on title or bad title refers to a title to property impaired by causes such as unpaid taxes or other unpaid liens, a faulty or incomplete certificate of occupancy, improperly signed/written deeds, unresolved legal debts, an incorrect survey, or building code violations. If all interests in a real property are not properly transferred to the owner, then it will result in a bad title. Any such cause needs to be rectified before a property can be legally transferred.