Level 5: Encumbrances

Question 1

Possessory

Answer 1

interest in property that includes the right to possess and occupy the property, now or in the future (if you own a home, you have a possessory interest in it)

Question 2

Non-Possessory

Answer 2

interest in property that does NOT include the right to possess or occupy the property

Question 3

Encumbrance

Answer 3

a non-possessory interest in a property that burdens the title, encumbrances are attached to the title, not the owner of the property

Question 4

Encumbrances: Easements

Answer 4

an interest in, or a right to use, another individual’s land or property, generally for a specific, limited purpose (when someone has a right to use an easement, what they actually have is an interest in the property, but not an estate in it)

Question 5

Encumbrances: Liens

Answer 5

a claim made by a creditor against real or personal property pledged by a debtor as collateral

Question 6

Encumbrances: Deed Restrictions

Answer 6

non-governmental private land-use control

Question 7

Encumbrances: Leases

Answer 7

use of the property is significantly limited until lease is up

Question 8

Encumbrances: Clouds on Titles

Answer 8

come from confusion over who has a claim to the property, changes in ownership like death or divorce, or even something like fraud

Question 9

Licenses

Answer 9

revocable and temporary permission to use someone else’s property for a specific purpose ex. - A landowner decides to give a certain person permission to hunt on their property

Question 10

License vs. Easement Visual Aid

Question 11

Encroachments

Answer 11

physical property that crosses the boundary into a neighboring landowner’s property

Question 12

Constructive Notice

Answer 12

the legal presumption that individuals will obtain information through due diligence

Question 13

Actual Notice

Answer 13

next level of notice, it means the buyer is actually aware of it