Ch 4

Question 1

Encumbrances

Answer 1

Non-possessory interests in real property;

interests that don’t include ownership or possession of the property.

Question 2

Freehold vs leashold estate

Answer 2

Freehold =

Leasehold =

Question 3

Encumbrance example

Answer 3

Mortgage

Claim against the property, but not exclusive possession like an owner

Question 4

T/F: Unencumbered property is the exception, not the rule

Answer 4

True

Question 5

Financial encumbrances are also called ___

Answer 5

Liens

Ex: Mortgage

Question 6

Non-financial encumbrances = ____ and ____

Answer 6

Easements;

Private restrictions

Question 7

Best definition of encumbrance:

A.The degree, nature, quantity, and extent of interest that a person has in real property

B.The use of property by a debtor as security for a debt

C.Any action taken in relation to real property except for acquiring title

D.Anything that limits or affects the title to real property

Answer 7

D. Anything that limits or affects the title to real property

Question 8

Encumbrance = a non-possessory interest in real property, such as a ___ or an ___

Answer 8

Lien;

Easement

Question 9

Encumbrances burden or limit the property owner’s ___.

Answer 9

Title

Question 10

the person who holds a lien (the lienholder) has a ___ claim against the property

Answer 10

Financial