Property Ownership, Transfer of Title & Land Use 6

Question 1

What is an encumbrance?

Answer 1

An encumbrance is a claim, charge, or liability that attaches to Real Estate like private or public restrictions, easements, liens, and encroachments.

They affect the condition or use of the property.

Question 2

What is Lien?

Answer 2

A Lien is a legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation.

Question 3

When does a Lien attach to real property?

Answer 3

When it is recorded

Question 4

When does a Lien attach to personal property?

Answer 4

Until the property is seized

Question 5

What two ways can Liens be created?

Answer 5

voluntarily or involuntarily.

Question 6

How is a Voluntary Lien created?

Answer 6

A Voluntary lien is created with the owner’s consent.

Question 7

How is a Involuntary Lien created?

Answer 7

An Involuntary lien is created without the owner’s consent and may be statutory (created by law) or equitable (created by court action)