Encumbrances, including Easements, Encroachments, Lincenses, and Deed Restrictions

Question 1

What is an encumbrance?

Answer 1

It’s an interest in and right to real property that limits the legal owner’s freehold interest

Question 2

The 2 general types of encumbrances are those that _

Answer 2

Affect the property’s use and those that affect legal ownership, value, and transfer

Question 3

What are the 2 most common types of encumbrances? Explain them

Answer 3

1. Easement: such as a utility easement, enables others to use the property, regardless of the owner’s desires. This may be affirmative, allowing a use, or negative, prohibiting a use
2. Lien: such as a tax lien, can be placed on the property’s title, thereby restricting the owner’s ability to transfer clear title to another party

Question 4

What is an encroachment?

Answer 4

It’s an unauthorized, physical intrusion of one owner’s real property into that of another. If an encroachment owner takes no remedial action over a prescribed number of years, the encroachment may become an easement by prescription

Question 5

What are licenses?

Answer 5

Personal rights to use a property. They do not attach, are non-transferable, and revocable

Question 6

What are deed restrictions?

Answer 6

Conditions and covenants imposed on a property by deed or subdivision plat