What term refers to negative issues or claims that may affect ownership of a property?

The correct term that refers to negative issues or claims that may affect ownership of a property is "clouds." In real estate, a cloud on title indicates a potential unresolved issue that might affect an individual’s right to ownership, such as an undisclosed claim or lien against the property. This can create uncertainty for prospective buyers and make it difficult to transfer or sell the property until the cloud is resolved.

Liens represent a financial claim against the property, often arising from unpaid debts, but they are a specific type of encumbrance rather than a general term for negative issues. Encumbrances encompass any claim against the property, including easements and liens, but clouds specifically denote possible defects that cast doubt on clear ownership. Contingencies are conditions that must be met for a real estate contract to proceed, and they do not directly refer to issues affecting ownership themselves. Thus, "clouds" is the most appropriate term for the context of ownership disputes in real estate.