What type of right may be excluded from coverage if a seller claims no one is in possession of the property?

Possessory rights may be excluded from coverage if a seller claims that no one is in possession of the property. This is because possessory rights pertain to the rights of individuals or entities that hold or occupy a property, even if they may not have formal ownership documents, such as leases or other agreements indicating an interest in the property.

In situations where a seller asserts that no one is in possession, it creates a presumption that there are no competing claims to the property that could affect the buyer's title. Consequently, title insurance may not cover claims arising from prior occupants or other parties asserting rights based on possession. This is particularly relevant in real estate transactions, where thorough examination of current and prior possessions can clarify the final ownership and help prevent future disputes.

The other options relate to different aspects of property rights. Transfer rights involve the ability to convey ownership, equity rights focus on financial interest or claims to value in the property, and beneficial rights pertain to advantageous interests that may be enjoyed by a third party. These do not connect directly to the situation described, which revolves primarily around the actual possession of the property.