What term refers to a claim or lien that can affect property ownership?

The term that refers to a claim or lien that can affect property ownership is "encumbrance." An encumbrance is any claim, lien, charge, or liability attached to and binding upon real property. It may affect the property’s title and can include mortgages, easements, property tax liens, or restrictive covenants. These factors can influence the rights of property owners and the marketability of the property.

Understanding encumbrances is critical for title agents because they must ensure that any encumbrances are disclosed and resolved before closing a transaction, ensuring that clear title can be provided to the new owner. This is crucial for protecting the interests of both buyers and lenders in real estate transactions.

The other terms do not relate to claims or liens impacting property ownership in the same way: assumption involves taking over a debt or obligation, subrogation refers to the legal right of a party to pursue a third party for a debt owed to them, and conveyance pertains to the transfer of title or interest in property.