Which term refers to the interest or ownership in a property?

The correct answer is equity, which represents the interest or ownership an individual has in a property. Equity is calculated as the difference between the market value of the property and the amount owed on any mortgages or liens. It signifies the portion of the property that the owner truly "owns" outright. For instance, if a home is valued at $300,000 and the owner has a mortgage balance of $200,000, the owner has $100,000 in equity in the property.

Understanding equity is essential in real estate as it can impact a homeowner’s ability to refinance, take out loans against the property, or determine the profit from a sale. In contrast, the term deed refers to the legal document that conveys property ownership from one party to another, while title indicates the legal right to own or use the property. Claim generally refers to a declaration of ownership or a right to the property, which does not adequately define the complete interest or ownership aspect reflected in the term equity.