What term describes any claim or encumbrance that may impair the title to a property?

The term that describes any claim or encumbrance that may impair the title to a property is "cloud on title." This phrase refers to any situation where there is uncertainty or a defect in the chain of title, which can affect the ownership rights of the property. A cloud on title might arise from various sources such as unresolved legal issues, outstanding liens, or any claims that may challenge the rightful ownership or the clear title to the property. Addressing a cloud on title is critical for buyers and sellers to ensure that the title is marketable and free from issues that could lead to disputes or legal challenges in the future.

Property liens, while related to financial encumbrances on a property, are more specific and don't encompass all potential claims or defects that might cloud the title. Title insurance is a product that protects against losses from past title issues but doesn't itself refer to the encumbrances. A deed of trust is a specific legal document used in real estate financing, not a direct term for impairing title. Understanding these distinctions helps clarify why "cloud on title" is the accurate term to describe a broad range of claims and encumbrances affecting property title.