What kind of ambiguity arises from extrinsic facts or evidence rather than appearing on the face of a legal instrument?

Latent ambiguity refers to a situation where the language of a legal document appears clear and unambiguous when first read, but becomes uncertain when applied to specific facts or circumstances. This type of ambiguity arises from extrinsic facts or evidence that are not apparent from the text of the instrument itself.

For example, if a deed describes a property that is located "near Main Street," it may initially seem clear. However, if there are two streets named "Main Street" due to new developments or changes, the intent of the parties may become ambiguous when trying to determine which "Main Street" is referenced. This uncertainty does not stem from the wording itself but from the extrinsic facts surrounding the subject of the document.

In contrast, patent ambiguity is seen when an ambiguity is evident on the face of the instrument, such as contradictory language or terms that have no clear meaning. The other options, defeasible fee simple and life estate, are specific types of property interests and do not pertain to the concept of ambiguity in interpreting legal documents. Thus, the distinction of latent ambiguity is crucial in understanding how extrinsic evidence can impact the interpretation of legal instruments.