A-4 Encumbrances Flashcards
Anything that affects or limits the fee simple title to property.
Encumbrance
4 basic types of encumbrances
- Easement(s) 2. deed restrictions 3. encroachments 4. Liens
A non possessory property interest right one person has in land owned by someone else, which gives the holder limited use or enjoyment of the land.
Easement
A claim or charge as security for a debt or obligation one person has upon the property of another. (Either specific or general)
Lien
Voluntary Lien
Mortgage, trust deeds, seller carry backs.
Involuntary Liens
Property taxes, assessments, attachments, judgments, mechanic’s Liens, IRS, decedent debts.
Money paid for such items as street improvements
Assessments
Three legal steps pursuant to an attachment:
Lis Pendens, writ of attachment, garnishment.
A court order directing the sheriff to seize and sell as much of the defendant’s property as necessary to satisfy the debt and the expense of the sale.
Writ of Execution
A legal period of time in which parties may bring suit to enforce their rights. In case of a judgment, a plaintiff has five years to obtain a writ of execution from the court.
Statute of Limitations
A mechanics lien not yet adjudicated and in the process is referred to as
incohate
The lender has legal title to a mortgaged property, and the borrower has “equitable title”. In a default a lender takes back the property automatically.
Title theory
The borrower has legal title to a mortgaged property, and the lender is the holder of the deed of trust or mortgage lien.
Lien Theory
One of two instruments a borrower sign in conjunction with a trust deed or mortgage. Unconditional written promise to pay a specified amount of money to another.
Promissory note
This type of mortgage usually has a release clause and covers more than one parcel of real estate
Blanket mortgage
