Which of the following would not be an example of a cloud on title?

A cloud on title refers to any claim, lien, or legal matter that affects the title to real estate, making it unclear or disputable. In this context, the correct answer highlights an issue that typically does not constitute a cloud on title.

A locked-in clause in a trust deed that has not been recorded does not create a cloud on title since it has not been formally documented in the public records and, therefore, is not visible to interested parties conducting a title search. For something to be recognized as a cloud on title, it usually must be registered or filed in a manner that can affect the property’s title and be discovered through standard title searches. As such, this unrecorded locked-in clause lacks the necessary public visibility or enforceability that characterizes a cloud on title.

In contrast, a pending lawsuit, a mortgage lien, and a judgment lien all can lead to disputes regarding ownership or encumbrance of property, thereby making them clouds on title. These items are generally recorded and can be identified through title searches, impacting the clarity of the title. Therefore, a locked-in clause in a trust deed that has not been recorded stands out as not fitting the definition of a cloud on title.