Chapter 5: Encumbrances and Liens

Question 1

Easements and encroachments are types of

Answer 1

Encumbrance

Question 2

An affirmative easement gives the benefited party…

Answer 2

the right to a defined use of a portion of another’s real property

Question 3

There are two adjoining properties. An easement allows property A to use the access road that belongs to property B. In this situation, property A is said to be which of the following in relation to property B?

Answer 3

Dominant tenement

Question 4

Which of the following describes a situation in which an easement might be created against the wishes of the property owner?

Answer 4

The property has been continuously used as an easement with the knowledge but without the permission of the owner for a period of time

Question 5

What is the primary danger of allowing an encroachment?

Answer 5

Over time, the encroachment may become an easement by prescription that damages the property’s market value

Question 6

A property owner who is selling her land wants to control how it is used in the future. She might accomplish her aim by means of…

Answer 6

a deed restriction

Question 7

What distinguishes a lien from other types of encumbrance?

Answer 7

It involves a monetary claim against the value of a property

Question 8

A certain property has the following liens recorded against it: a mortgage lien dating from three years ago; a mechanic’s lien dating from two years ago; a real estate tax lien for the current year. In case of a foreclosure, which of these liens will be paid first?

Answer 8

real estate tax lien

Question 9

The lien property of junior liens can be changed by a lienor’s agreement to…

Answer 9

subordinate

Question 10

Among junior liens, the order of priority is generally established according to…

Answer 10

the date of recordation

Question 11

What is meant by a “lien theory” state?

Answer 11

a state in which a mortgagor retains title to the property when a mortgage lien is created

Question 12

A homeowner has hired a contractor to build a room addition. The work has been completed and the contractor has been paid for all work and materials but fails to pay the lumberyard for a load of lumber. What potential problem may the homeowner experience?

Answer 12

the lumberyard may place a mechanic’s lien for the amount of the lumber against the homeowner’s real property

Question 13

The process of enforcing a lien by forcing the sale of the lienee’s property is called…

Answer 13

foreclosure

Question 14

An important difference between a judicial foreclosure and a non-judicial foreclosure is…

Answer 14

there is no right to redeem the property in a non-judicial foreclosure

Question 15

A defaulting borrower may avoid foreclosure by giving the mortgagee…

Answer 15

a deed in lieu of foreclosure

Question 16

A property survey reveals that a new driveway extends one foot onto a neighbor’s property. This is an example of…

Answer 16

an encroachment

Question 17

A property owner has an easement appurtenant on her property. When the property is sold to another party, the easement…

Answer 17

transfers with the property

Question 18

A brick fence straddles the property line of two neighbors. The neighbors agree not to damage it in any way. This is an example of…

Answer 18

a party wall

Question 19

A property owner allows Betty Luanne to cross his property as a shortcut to her kindergarten school bus. One day the property owner dies. What right was Betty given, and what happens to it in the future?

Answer 19

A license, which terminates at the owner’s death

Question 20

A court renders a judgment that authorizes a lien to be placed against the defendant’s house, car, and personal belongings. This is an example of a…

Answer 20

general judgment lien