This section is from the book "The Law Of Land Contracts", by Asher L. Cornelius. Also available from Amazon: Michigan Law Of Land Contracts.
A cloud on the title is an outstanding claim or encumbrance which if valid would affect or impair the title of the owner of a particular estate, and which apparently and on its face has that effect, but which can be shown by extrinsic proof to be invalid or inapplicable to the estate in question.9
The cloud upon the title must constitute an apparent encumbrance upon it, or an apparent defect in it, and something that shows prima facie some right of a third party either to the whole or some interest in it.10
Any instrument which shows by its terms to be a conveyance from the original source of title to an adverse claimant creates a cloud upon title, if extrinsic evidence is needed to show the invalidity of the instrument.11
Another title of a nature rendering it questionable whether it is not prima facie a better title than that of plaintiff constitutes a cloud on his title.12
A cloud, such as equity will undertake to remove, is the semblance of a title, or the claim of an interest in lands appearing in some legal form, but which is in fact unfounded, and which it would be inequitable to enforce.13
Where the owner of cutting stone rights claimed the right to have tracks out on the land, to be used for shipment of his freight, is the claim of an easement in the land and a cloud on the title of its owner.14
The owner of property whose title is clouded by the recording of an instrument may maintain a suit to have the record vendor has an undoubted right to a good title and to a deed with proper covenant of warranty.
See also the following decisions supporting the text: Develan v. Duncan, 49 N. Y. 485; Jefferies v. Jefferies, 117 Mass. 184; Middleton v. Thompson, 163 Pa. 112; Hamlin v. Schulte, 34 Minn. 447; Pett v. Sherwood, 43 Minn. 447; Gauthier v. West, 45 Minn. 192; Davis v. Henderson, 17 Wis. 103.
9. 11 C. J. 920.
10. Whitney v. Port Huron, 88 Mich. 268; Detroit v. Martin, 34 Mich. 170.
11. Stoddard v. Prescott, 58 Mich. 542.
12. Eaton v. Trowbridge, 38 Mich. 454.
13. Head v. Fordyce, 17 Cal. 149.
14. Oman v. Bedford, 134 Fed. 64.
cancelled although the instrument was not entitled to go on record.15
A deed executed by a married woman, without being acknowledged by her in the manner prescribed by law constitutes a cloud on the title which equity will take cognizance of.16
Where it is necessary to have legal acumen to discover the defect in a deed, it constitutes a cloud on title which a court of equity will remove.17
A deed by one who has only a contingent remainder, which afterwards became extinct, cast a cloud upon the title.18
An outstanding lease constitutes a cloud on the title, where, although originally valid, proof of extrinsic evidence must be introduced to show that it has become functus officio by reason of a violation of its condition.19
A certificate of sale of land under execution will be removed as a cloud on title, where it is prima facie valid.20
When a tax is made a lien on the premises assessed, if illegal, it constitutes a cloud which equity will remove.21
Where a judgment creditor who had caused the equitable interest of his debtor in land to be sold on execution, neglected for over a year to take proceedings to ascertain the interest of the debtor a bill was sustained to vacate the levy and sale.22 and such a bill may be maintained by the legal owner.23
 
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