Types of Encumbrances

Question 1

What is an Encumbrance?

Answer 1

An interest in real estate that does not rise to possession or ownership, yet, still, gives a person(s) or business, or entity some degree of use or control of the property.

A claim or interest against a property by a party that is not the owner like a mortgage, real estate tax, easements, outstanding dower

Question 2

What is a Lien a type of?

Answer 2

Encumbrance

Question 3

What is a Lien?

Answer 3

A type of Encumbrance that is a charge against a property that provides security for a debt or an obligation of the property owner. If the debt is not repaid or obligation broken, then legal court action or forced sale of property takes place

Question 4

What is an example of Lien?

Answer 4

Mortgages, real estate taxes

Question 5

What are Private Restrictions?

Answer 5

Restrictions that affect the use of real estate property and are usually created with the Deed. Known as Deed Restrictions. Restrictions may include restrictions on agriculture, or obligations required by the owner, such as mowing the lawn.

Question 6

When a Deed Restriction is made, the restriction ends once the owner sells the land. T/F?

Answer 6

False. Deed Restrictions run with the land and continues to future owners. Restrictions cannot violate Fair Housing Act by way of prohibiting property transfers

Question 7

What are CC&Rs?

Answer 7

Covenants, Conditions, and Restrictions are used by subdivision developers to maintain certain standards, such as standard agricultural or design specifications for improvements.

Question 8

How are Restrictions maintained?

Answer 8

As long as the Original Developer maintains interest in any part of the property, and well as with any future property owners.

Question 9

What is a Covenant?

Answer 9

A solemn promise to engage or refrain from a specified action.

Question 10

What is an example of Covenant?

Answer 10

An owner and future owners must refrain from raising livestock or must mow the lawn once a week.

Question 11

What is a Condition?

Answer 11

An Agreement between two parties where an offer will only be present if this specific condition is met.

Ex. - Buyer agreeing to purchase a property only if it passes a home inspection.

Question 12

What is an Easement Appurtenance?

Answer 12

An attached ownership of real estate that allows the use of another’s property and runs with the land.

Question 13

What is an example of Appurtenance and who is Lot B and who is Lot A?

Answer 13

The owner of Lot B has an easement appurtenance across Lot A to gain access to his property from the public road.

Lot A is the Servient Tenement to which is burdened by the Easement

Lot B is the Dominant Tenement who benefits from the Easement

Question 14

What is an Easement?

Answer 14

The right to use the land of another for a specific purpose and does not include right of possession (Corporeal Interest)

Question 15

What is a Party Wall Easement?

Answer 15

An exterior wall that is shared between two parties and is also shared in expenses of maintenance. Easement must also be written in agreement and signed by both parties.

Question 16

What are the requirements to maintain Easement Appurtenance?

Answer 16

Two adjacent parcels of land must be own by two difference parties. If one party buys the other parcel then the easement is terminated because there will then be no use for an easement.

Question 17

How is a Party Wall terminated?

Answer 17

When the wall becomes unfit for the purpose, decayed that it requires rebuilding, accidentally destroyed, even if a portion or whole wall remains standing.

Question 18

What is Easement Gross?

Answer 18

An easement created in court for the sole benefit of the easement owner.

Question 19

What is an example of Easement Gross?

Answer 19

Power lines or pipelines that run through another’s property and does not benefit the land owner.

Question 20

When does an Easement Gross end?

Answer 20

Easement ends when the owner of the easement dies.

Question 21

Is Party Wall an example of Reciprocal Easement?

Answer 21

Yes. Reciprocal Easement is an agreement between two parties to use shared areas.

Question 22

How do you create an easement?

Answer 22

A written agreement must be created between the parties. Or by Easement by Necessity or Easement by Prescription

Question 23

What is an Easement by Necessity?

Answer 23

An easement created not by convience and is usually created when the owner of one landlocked parcel has no other way of public access but through another’s property. Court order based on the right of entry and right of exit.

Question 24

What is Easement of Prescription?

Answer 24

The continuous use of another’s land without the owner’s permission for a certain period of time determined the state, usually 10-21 years. The use needs to have been exclusive and out in the open for the owner to have learned of it, and notorious.

Question 25

What is prescriptive easement by tacking?

Answer 25

If the current owner using the land of the other without permission sells their land, and the new owner continues to encroach on the land of the other, then the years used by the previous owner and the current will be added together to created a prescriptive easement.

Question 26

Match the Following with the Letter Associated with it.

Deed Restriction
License
Easement
Lien
Encumbrance

A. Right to use the land of another for a particular purpose, including the airspace above or a right-of-way across the land.

B. A personal privilege to enter the land of another for a specific purpose; differs from an easement in that it can be terminated or canceled.

C. Private rule that limits the use of property and is binding on all future grantees.

D. A charge against property providing security for a debt or a obligation of the owner.

E. A claim, charge, or liability that attaches to real estate, and may or may not be monetary.

Answer 26

Deed Restriction = C
License = B
Easement = A
Lien = D
Encumbrance = E

Question 27

Covenants, conditions, and restrictions (CC&Rs) are police powers that affect land use. T/F?

Answer 27

False. CC&Rs are not police powers.

Question 28

An encumbrance is not an estate, so it does NOT allow possession. T/F?

Answer 28

True.