Chapter 4: Encumbrances

Question 1

Generally, lien priority is determined by:

Answer 1

the date the lien was recorded.

Question 2

An item that belongs to and passes with the title of real property is:

Answer 2

an appurtenance

An appurtenance is anything incident to or attached to the land that transfers with the title to the property.

Question 3

The right given to remove something from the land belonging to someone else is known as

Answer 3

A profit

The difference between a profit and an easement is that an easement creates a right of use and a profit allows the removal of something from the land, e.g., timber.

Question 4

Real property tax is a __________ lien on a property.

Answer 4

Specific

Property tax is an involuntary specific lien on real property.

Question 5

A person who provides labor, materials, or professional services for the improvement of real property can file __________ against the property

Answer 5

A mechanics lean

A mechanic’s lien is a statutory lien on a specific property for labor, materials, or professional services rendered.

Question 6

A deed of trust is:

Answer 6

A security instrument, similar to a mortgage

A Deed of Trust is the security instrument (similar to a mortgage) deeding or giving a trustee (third party) one of the sticks in the bundle of rights; that of the right to sell the property for the beneficiary-lender in the event of trustor (borrower) default.

Question 7

The servient estate, as it applies to an easement appurtenant, is the property

Answer 7

upon which the easement is placed.

With an easement appurtenant, the property upon which the easement is placed is the servient estate or tenement and the property benefiting from the easement is the dominant estate or tenement.

Question 8

A noxious odor or unsightly condition on a property that interferes with the neighboring property owner’s reasonable use and enjoyment of their property is known as:

Answer 8

A nuisance

A nuisance is not an encumbrance to real property but rather a violation of an owner’s possessory rights.

Question 9

When property is made security for a debt, the property is said to be all of the following, EXCEPT:

Answer 9

Condemned

A secured lien is one that attaches to a specific piece of property as security for the payment of a financial debt. Often the term “collateral” is used to describe the specific property lien. Once a property owner has agreed to record a voluntary lien against the property, the owner is said to have “hypothecated” the property.

Question 10

A distinguishing factor of a license is that it:

Answer 10

Can be revoked

A license gives someone a right, generally oral, to cross or make use of a landowner’s property and can be revoked at will.