diff --git a/python-checks/src/main/java/org/sonar/python/checks/LocalVariableAndParameterNameConventionCheck.java b/python-checks/src/main/java/org/sonar/python/checks/LocalVariableAndParameterNameConventionCheck.java
index ee374a68c..f6961cda7 100644
--- a/python-checks/src/main/java/org/sonar/python/checks/LocalVariableAndParameterNameConventionCheck.java
+++ b/python-checks/src/main/java/org/sonar/python/checks/LocalVariableAndParameterNameConventionCheck.java
@@ -32,7 +32,11 @@
 import org.sonar.plugins.python.api.symbols.Usage;
 import org.sonar.plugins.python.api.symbols.v2.SymbolV2;
 import org.sonar.plugins.python.api.symbols.v2.UsageV2;
+import org.sonar.plugins.python.api.tree.AnnotatedAssignment;
+import org.sonar.plugins.python.api.tree.AssignmentExpression;
 import org.sonar.plugins.python.api.tree.AssignmentStatement;
+import org.sonar.plugins.python.api.tree.CallExpression;
+import org.sonar.plugins.python.api.tree.ConditionalExpression;
 import org.sonar.plugins.python.api.tree.Expression;
 import org.sonar.plugins.python.api.tree.FunctionDef;
 import org.sonar.plugins.python.api.tree.Name;
@@ -40,6 +44,7 @@
 import org.sonar.plugins.python.api.tree.SubscriptionExpression;
 import org.sonar.plugins.python.api.tree.Tree;
 import org.sonar.plugins.python.api.types.v2.PythonType;
+import org.sonar.python.checks.utils.Expressions;
 import org.sonar.python.checks.utils.MarimoUtils;
 import org.sonar.python.semantic.SymbolUtils;
 import org.sonar.python.tree.TreeUtils;
@@ -107,7 +112,8 @@ private void checkName(SymbolV2 symbol, SubscriptionContext ctx) {
   private boolean isType(SymbolV2 symbolV2) {
     // TypeV1 and TypeV2 can detect different cases and work complementary to find more issues
     Symbol symbolV1 = SymbolUtils.symbolV2ToSymbolV1(symbolV2).orElse(null);
-    return symbolV1 != null && (isExtendingType(symbolV1) || isAssignedFromTyping(symbolV2) || isPythonTypeAClassType(symbolV2));
+    return symbolV1 != null && (isExtendingType(symbolV1) || isAssignedFromTyping(symbolV2) || isAssignedFromBuiltinType(symbolV2)
+      || isPythonTypeAClassType(symbolV2));
   }
 
   private static boolean isExtendingType(Symbol symbol) {
@@ -136,18 +142,69 @@ private static boolean isAssignedFromTyping(SymbolV2 symbol) {
     return false;
   }
 
+  /**
+   * Determines whether a local variable is assigned from the built-in {@code type} function.
+   *
+   * @param symbol the local variable symbol
+   * @return {@code true} when an assignment directly produces a class object
+   */
+  private static boolean isAssignedFromBuiltinType(SymbolV2 symbol) {
+    return symbol.usages().stream()
+      .filter(u -> u.kind() == UsageV2.Kind.ASSIGNMENT_LHS)
+      .flatMap(usage -> getAssignedValue(usage.tree()))
+      .anyMatch(LocalVariableAndParameterNameConventionCheck::isBuiltinTypeAssignment);
+  }
+
+  /**
+   * Determines whether an assignment directly produces a class object with {@code type}.
+   *
+   * @param assignedValue the expression assigned to the local variable
+   * @return {@code true} when the expression is a built-in {@code type} call or its {@code None} conditional branch
+   */
+  private static boolean isBuiltinTypeAssignment(Expression assignedValue) {
+    Expression unwrappedValue = Expressions.removeParentheses(assignedValue);
+    if (isBuiltinTypeCall(unwrappedValue)) {
+      return true;
+    }
+    if (unwrappedValue instanceof ConditionalExpression conditionalExpression) {
+      return isBuiltinTypeCall(conditionalExpression.trueExpression()) && conditionalExpression.falseExpression().is(Tree.Kind.NONE)
+        || isBuiltinTypeCall(conditionalExpression.falseExpression()) && conditionalExpression.trueExpression().is(Tree.Kind.NONE);
+    }
+    return false;
+  }
+
+  /**
+   * Checks whether an expression is a call to the resolved built-in {@code type} function.
+   *
+   * @param expression the expression to inspect
+   * @return {@code true} when the expression calls the built-in {@code type} function
+   */
+  private static boolean isBuiltinTypeCall(Expression expression) {
+    Expression unwrappedExpression = Expressions.removeParentheses(expression);
+    if (unwrappedExpression instanceof CallExpression callExpression) {
+      Symbol calleeSymbol = callExpression.calleeSymbol();
+      return calleeSymbol != null && "type".equals(calleeSymbol.fullyQualifiedName());
+    }
+    return false;
+  }
+
   private boolean isPythonTypeAClassType(SymbolV2 symbol) {
     PythonType type = SymbolUtils.getPythonType(symbol);
     return isDjangoModelTypeCheck.check(type).isTrue();
   }
 
   private static Stream<Expression> getAssignedValue(Tree assignmentName) {
-    var assignmentStmt = TreeUtils.firstAncestorOfClass(assignmentName, AssignmentStatement.class);
-    if (assignmentStmt != null) {
-      return Stream.of(assignmentStmt.assignedValue());
-    } else {
-      return Stream.empty();
+    Tree assignment = TreeUtils.firstAncestor(assignmentName,
+      t -> t.is(Tree.Kind.ASSIGNMENT_STMT, Tree.Kind.ANNOTATED_ASSIGNMENT, Tree.Kind.ASSIGNMENT_EXPRESSION));
+    Expression assignedValue = null;
+    if (assignment instanceof AssignmentStatement assignmentStatement) {
+      assignedValue = assignmentStatement.assignedValue();
+    } else if (assignment instanceof AnnotatedAssignment annotatedAssignment) {
+      assignedValue = annotatedAssignment.assignedValue();
+    } else if (assignment instanceof AssignmentExpression assignmentExpression) {
+      assignedValue = assignmentExpression.expression();
     }
+    return assignedValue != null ? Stream.of(assignedValue) : Stream.empty();
   }
 
   private static @Nullable Symbol getTypingSymbol(Expression expr) {
diff --git a/python-checks/src/test/resources/checks/localVariableAndParameterNameIncompatibility.py b/python-checks/src/test/resources/checks/localVariableAndParameterNameIncompatibility.py
index 63baf38b4..7b637e1e3 100644
--- a/python-checks/src/test/resources/checks/localVariableAndParameterNameIncompatibility.py
+++ b/python-checks/src/test/resources/checks/localVariableAndParameterNameIncompatibility.py
@@ -91,6 +91,29 @@ class MyClass:
     MyClassAlias = MyClass  # OK
     MyTypeVariable: type = unknown_call()  # Noncompliant
 
+def builtin_type_assignments(role, roles):
+    RoleType = type(role)
+    OptionalRoleType = type(roles[0]) if roles else None
+    ParenthesizedRoleType = (type(role))
+    BadName = wrapper(type(role))  # Noncompliant
+
+def annotated_builtin_type_assignments(role, roles):
+    AnnotatedRoleType: type = type(role)
+    AnnotatedOptionalRoleType: type | None = type(roles[0]) if roles else None
+    AnnotatedBadName: type = wrapper(type(role))  # Noncompliant
+
+def walrus_builtin_type_assignments(role):
+    if (WalrusRoleType := type(role)):
+        pass
+    while (WalrusBadName := wrapper(type(role))):  # Noncompliant
+        pass
+
+def shadowed_type_assignment():
+    def type(value):
+        return value
+
+    BadName = type("role")  # Noncompliant
+
 def ml_names():
     X = [1, 2, 3]
     Y = [0, 1, 0]