Final answer:
The term for an encumbrance or claim that affects the title to real property is referred to as a lien, but based on the given options, 'Chain of title' is the most accurate term as it reflects the property's historical titling issues.
Step-by-step explanation:
The term for an encumbrance or claim that affects title to real property is known as a lien. However, among the options provided, the most appropriate answer would be Chain of title. The chain of title is the history of the transfers of title to a piece of property, and discrepancies or irregularities within this chain can be encumbrances or claims affecting the property's title. A lien is a right to keep possession of property belonging to another person until a debt owed by that person is discharged. To be clear, Title error refers to mistakes associated with the property title itself, and Registry System is a system for tracking land ownership and interests. The term Title gap is not commonly used in this context.