American Land Title Association (ALTA) Practice Exam 2025 - Free ALTA Practice Questions and Study Guide

A title dispute typically arises in situations where there are conflicting claims regarding ownership rights or existing liens against a property. This can occur for various reasons such as errors in public records, fraudulent claims, or overlapping interests from different parties. When multiple individuals or entities assert ownership or have claims against the same property, it creates uncertainty regarding who has the rightful claim, leading to a conflict that necessitates resolution.

In this context, conflicting claims of ownership or liens directly address the issue of title disputes, as they challenge the validity of the title as recorded. This establishes a legal framework for resolution and underscores the importance of thorough title examinations in real estate transactions. Issues concerning market value fluctuations, requests for lower purchase prices, or property damage found during inspections do not directly lead to disputes about ownership or the title itself, making them less relevant to the question at hand. Thus, the scenario involving conflicting claims is the correct selection for understanding when title disputes may arise.