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How might a conveyance create conflicts with the rights of third parties?

  1. By containing areas not owned by the grantor

  2. Through governmental restrictions

  3. By having verbal agreements

  4. Due to incomplete records

The correct answer is: By containing areas not owned by the grantor

A conveyance can create conflicts with the rights of third parties by including areas not owned by the grantor, which raises significant legal issues surrounding ownership and entitlements. When a grantor conveys property, they must only transfer what they legally own. If the conveyance includes boundaries or areas that extend into land not owned by the grantor, this may infringe upon the rights of neighboring property owners or other third parties who have legitimate claims or interests in that land. This situation can lead to disputes over property lines, potential trespass claims, or even lawsuits, as third parties may assert their rights to the property that was incorrectly included in the conveyance. Such conflicts emphasize the importance of conducting thorough due diligence during the property assessment and title verification process to ensure the grantor has the rightful authority to convey the proposed property. Other options such as governmental restrictions, verbal agreements, and incomplete records can also introduce complications but do not directly address the fundamental issue of ownership rights stemming from a claim over property that the grantor does not own, which is central to understanding why the first option relates most directly to the risks posed to third parties.