What Is a Cloud on Title in NH Real Estate?

🏡 What Is a Cloud on Title in NH Real Estate?

When buying or selling a home in Plymouth, Campton, Rumney, Thornton, Ashland, or anywhere in Central NH, a smooth closing depends on having clear title.

If there’s a problem with ownership or documentation, it’s called a cloud on title — and it must be fixed before the property can legally transfer.

Here’s what NH homeowners should know.

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What Is a Cloud on Title?

A cloud on title is any issue that creates uncertainty about who legally owns the property.

Examples include:

✔ Errors in past deeds

✔ Missing signatures

✔ Incorrect names

✔ Unreleased liens

✔ Old mortgages still showing

✔ Boundary disputes

✔ Claims from previous owners

✔ Probate or inheritance issues

A cloud means the title isn’t “clean,” and lenders won’t approve financing until it’s resolved.

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Common Causes of Title Clouds in NH

In Central NH’s older towns — Plymouth, Campton, Rumney, Wentworth — many properties have long histories with handwritten deeds or outdated surveys.

Typical causes:

1. Unreleased Mortgages

A loan paid off years ago but never officially discharged.

2. Contractor or Tax Liens

Unpaid bills recorded against the property.

3. Boundary or Easement Conflicts

Conflicting surveys or disputed driveways.

4. Inheritance Issues

Multiple heirs, incorrect transfers, missing probate documents.

5. Recording Errors

Typos, incorrect legal descriptions, missing pages.

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How Clouds on Title Are Cleared

Your closing attorney or title company will:

✔ Investigate the source

✔ Contact previous lenders or owners

✔ Obtain missing signatures

✔ File corrective deeds

✔ Discharge old liens

✔ Verify boundary lines

✔ Resolve probate or estate issues

This process is called curing title.

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How Clouds Affect NH Buyers & Sellers

Clouds on title can cause:

✔ Delayed closings

✔ Loan denials

✔ Price renegotiations

✔ Appraisal complications

✔ Legal disputes

Sellers should always resolve title issues before listing to avoid surprises.

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Q&A

Q: Can I still close on a home with a cloud on title?

A: Not with financing. Cash buyers might, but attorneys typically require it to be cleared first.

Q: Does title insurance cover clouds?

A: Yes — title insurance protects the buyer from hidden or missed issues.

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Keywords

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Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com