What is a condition called in which complete real estate ownership is impaired by unsettled claims and liens?

A condition in which complete real estate ownership is impaired by unsettled claims and liens is referred to as a "Cloud on Title." This term describes any situation that affects the clear ownership of the property and can create potential legal issues for the property owner or prospective buyers.

A cloud on the title can arise from various factors, such as outstanding mortgages, liens for unpaid taxes, unresolved claims from previous owners, or even disputes regarding the property boundaries. When a cloud is present, it can hinder the ability to sell or transfer the property until the issues causing the cloud are resolved.

In contrast, title insurance serves as protection against such issues, while a clear title indicates that there are no such impediments to ownership. A title defect similarly refers to flaws in the title that could affect ownership, but the specific term "cloud on title" more accurately describes the situation of having unresolved claims or liens.