Video Transcript:
What's the difference between a lien and a cloud on title? This is Dave at TitleSearch.com. If you're looking at a real estate title search or a certified abstract and you see a lien... what's the difference between that and a cloud? Well, a cloud on title is a non legal phrase that could describe any type of encumbrance on that property. It could be a lien, it could be a mortgage, it could be a deed which isn't executed properly. It might even be an error in a document. A lien is one particular type of a cloud on title. It's something that is a concern for a future buyer, maybe a lender, even the current owner would want to make sure that the clouds are cleared off that title. So if you have a lien, that's a very significant, straightforward type of a cloud. But there's other ones that could be a little less clear. For example, if an owner 50 years ago didn't sign their deed properly, that might create a cloud for the future owners. Being sure that a property doesn't have any clouds on title is an important part of a buying decision, a lending decision, or even continuing to own a property by the principal owner. Looking at those clouds in possible liens is an ongoing thing. They could change over time where it might be clear one day and three years later, a cloud may appear on that title, could be a lean or could be something else. So keeping updated on the status of the title is important. If you have questions about doing research on real estate records or title searching, you can reach us at our website at title search dot com.