Chapter 3: Encumbrances on Real Property Flashcards
Identify different types of encumbrances on real property and different types of liens, easements, and encroachments.
ad valorem taxes
A tax levied according to value, generally used to refer to real estate tax
assessment
(1) The imposition of a tax, charge, or levy, usually according to established rates. (2) Official valuation of property for the purpose of establishing assessed value for tax purposes.
deed restrictions
Clause placed in a deed by the owner to control the future uses of the property
dominant tenement
A property that includes in its ownership the appurtenant right to use an easement over another person’s adjacent property (called the servient tenement) for a specific purpose; ownership of the easement runs with the land
easement
A right to limited use and enjoyment of the land of another for a specific purpose without ownership; a nonposessory interest in real estate. Two types of easements are easement appurtenant and easement in gross.
easement appurtenant
An easement that runs with the land; the easement is part of both the dominant and the servient tracts and conveys with the title to either tenement.
easement by necessity
An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; i.e., to allow a landlocked owner a right of ingress and egress over a grantor’s land
easement by prescription
An easement acquired through adverse use of another’s property for a period of 20 or more years in North Carolina.
easement in gross
An easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner. There is no dominant tract. Personal easement in gross is not assignable; a commercial easement in gross is assignable.
encroachment
An unauthorized intrusion of an improvement, or any part of an improvement, on the real property of another party; can make title to both parcels unmarketable. Best discovered by survey.
encumbrance
Any charge, claim, lien, or liability held by someone other than the owner of property that may diminish the value or use and enjoyment of a property. May not prevent the transfer of title.
general lien
The right of a creditor to have all of a debtor’s current and future property for the next 10 years–both real and personal–sold to satisfy a debt; i.e., judgment lien
judgment
The formal decision of a court upon the respective rights and claims of the parties to an action or a suit. After a judgment has been entered and recorded with the county recorder, it becomes a general involuntary lien on the current and future real and personal property of the debtor in the country where recorded for the next 10 years.
license
(1) A privilege or right granted to a person by a state to operate as a real estate broker (2) The personal revocable nontransferable right to a temporary use of another’s land–a personal right that cannot be sold.
lien
A right given by law to certain creditors to have their debts paid out of the property of a debtor, usually by means of a court sale. An encumbrance on real property that can be general or specific