Encumbrances

Question 1

What are Encumbrances ?

Answer 1

Anything which limits, affects, or burdens the title to property.

Question 2

What are the two (2) different type of encumbrances ?

Answer 2

Money encumbrances and non-money encumbrances.

Question 3

Lien

Answer 3

a hold or claim which one person has on the property of another to secure payment of a debt or other obligation.

Question 4

Specific Liens

Answer 4

burdens on a particular parcel (e.g. trust deed, mortgage, mechanic’s lien, property tax, assessment, attachment)

Question 5

General Liens

Answer 5

burdens on any and all property of the owner (e.g. judgment, corporation franchise tax, estate tax, decedent’s debt, income tax)

Question 6

Voluntary Liens

Answer 6

a lien such as a trust deed or mortgage which is placed on the property by the voluntary act of the owner

Question 7

Involuntary Liens

Answer 7

a lien imposed without the consent of the owner

Question 8

Mechanic’s Liens

Answer 8

persons furnishing labor or material for the improvement of real estate may file liens on the property for non-payment.