Cloud On Title An apparent claim or encumbrance, such as a lien, that, if true, impairs the right of the owner to transfer his or her property free and clear of the interests of any other party. A cloud on title is generally considered as a title defect. Cloud on title can include a property's address being misspelled in a deed conveying title, a mortgage lien whose repayment hasn't been officially recorded, a deed which has been signed but hasn't been properly recorded, or a failure to transfer property rights to a former owner of the property.