Which term describes a claim to title due to a previous lien or incorrect conveyance?

Prepare for the Michigan State Title Insurance Exam. Enhance your study with flashcards and multiple-choice questions. Understand questions with detailed hints and explanations. Ace your exam!

The term that describes a claim to title due to a previous lien or incorrect conveyance is "title defect." A title defect refers to any issue that affects the ownership or rights associated with the property title. This can arise from various factors, such as unpaid mortgages, liens placed by contractors, errors in property descriptions, or conveyances that were not executed properly.

Understanding title defects is critical in the context of title insurance, as they can lead to legal challenges and disputes over ownership. Title insurance is designed to protect buyers and lenders from financial losses due to such defects in the title that may not have been uncovered during the title search process.

While the other terms may relate to aspects of property ownership or disputes, they do not specifically capture the nature of issues concerning past liens or mishandled conveyances in the same way. "Claim of ownership" is more about asserting one’s right to property rather than discussing defects. "Property dispute" generally refers to conflicts between parties over property rights but doesn’t focus on the technical aspects of title issues, and "title objection" usually applies to a specific contention raised against a title as part of the title examination process, rather than the ongoing implications of a defect in the title itself. Hence, "title defect

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