A claim to the title by someone else is termed as what?

A claim to the title by someone else is known as a title defect. This term refers to any circumstance that may challenge the legitimacy of the current title holder's ownership. It could arise from various issues, including unresolved liens, conflicting claims, or errors in public records. Title defects present a risk for property owners, as they may affect the property’s marketability and ultimately its value.

Identifying title defects is a critical function of title insurance, as the policy serves to protect the insured parties against losses arising from such defects. Understanding this concept is essential for anyone involved in real estate transactions, as it can influence the security of ownership and the financing of the property.

While encumbrances refer to any claim, liability, or restriction placed on the property that might affect its value, they do not necessarily imply a competing claim to ownership. The other options, like mortgage events or property appraisals, are not terms used to describe competing claims to title but rather refer to different real estate concepts.