Question

A cloud on a title is MOST likely to be discovered in a/an: Select one:

a. Application for title insurance
b. Title report
c. Appraisal report
d. Warranty deed

Answer 1

A cloud on a title is most likely discovered in a title report, which details any issues affecting property ownership and is typically used to reveal problems before obtaining title insurance.

Step-by-step explanation:

A cloud on a title is most likely to be discovered in a title report. A title report provides a detailed record of the property's title and includes any liens, encumbrances, or defects that might 'cloud' the title, suggesting that there may be a potential claim or issue that could affect the true ownership of the property. While other documents like a warranty deed, appraisal report, or an application for title insurance may reference or require clear title, it is the title report that typically reveals the problems, which might then lead to the purchase of title insurance to protect against these discovered issues.