Which of the following creates a limitation on property use?

Prepare for the Alabama Title Insurance Test. Practice with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

A title encumbrance creates a limitation on property use because it refers to any claim, lien, or liability attached to the property that affects its value or use. This could include easements, encroachments, or liens due to unpaid debts. These encumbrances restrict how the property can be utilized by the owner, potentially affecting their ability to sell or develop the property freely.

The conveyance of ownership interest pertains to the transfer of property rights but does not directly impose limitations on how the property can be used. The defeat of title to an estate involves losing ownership or rights to the property altogether, which is more about ownership status than usage limitations. Satisfaction of mortgage refers to the clearing of a debt secured by the property but does not inherently create any restrictions on how the property can be utilized afterward. Thus, title encumbrance is the most accurate answer when considering factors that limit property use.

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