What term denotes an ownership interest created by a financial investment in a property?

The correct term that denotes an ownership interest created by a financial investment in a property is called "Equity." Equity represents the value of ownership that an investor has in a property after accounting for any debts or liabilities attached to that property, such as loans or mortgages. When someone invests in real estate, their financial contribution increases their ownership stake, represented through equity.

Equity is calculated as the difference between the market value of the property and any outstanding mortgage or liens. For example, if a property is worth $300,000 and the owner has a mortgage of $200,000, the owner's equity in the property is $100,000. This concept is fundamental in real estate, as it reflects the owner's stake and potential profit from a sale.

Equitable title refers to a party's rights to obtain full ownership of a property, while encumbrance pertains to any claim against the property such as liens or easements, and eminent domain relates to the government's power to acquire private property for public use with compensation to the owner. These terms highlight different aspects of property law but do not accurately capture the notion of ownership interest through financial investment.