Types of Encumbrances Flashcards
What is an Encumbrance?
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
What is a Lien a type of?
Encumbrance
What is a Lien?
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
What is an example of Lien?
Mortgages, real estate taxes
What are Private Restrictions?
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.
When a Deed Restriction is made, the restriction ends once the owner sells the land. T/F?
False. Deed Restrictions run with the land and continues to future owners. Restrictions cannot violate Fair Housing Act by way of prohibiting property transfers
What are CC&Rs?
Covenants, Conditions, and Restrictions are used by subdivision developers to maintain certain standards, such as standard agricultural or design specifications for improvements.
How are Restrictions maintained?
As long as the Original Developer maintains interest in any part of the property, and well as with any future property owners.
What is a Covenant?
A solemn promise to engage or refrain from a specified action.
What is an example of Covenant?
An owner and future owners must refrain from raising livestock or must mow the lawn once a week.
What is a Condition?
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.
What is an Easement Appurtenance?
An attached ownership of real estate that allows the use of another’s property and runs with the land.
What is an example of Appurtenance and who is Lot B and who is Lot A?
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
What is an Easement?
The right to use the land of another for a specific purpose and does not include right of possession (Corporeal Interest)
What is a Party Wall Easement?
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.
What are the requirements to maintain Easement Appurtenance?
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.
How is a Party Wall terminated?
When the wall becomes unfit for the purpose, decayed that it requires rebuilding, accidentally destroyed, even if a portion or whole wall remains standing.
What is Easement Gross?
An easement created in court for the sole benefit of the easement owner.
What is an example of Easement Gross?
Power lines or pipelines that run through another’s property and does not benefit the land owner.
When does an Easement Gross end?
Easement ends when the owner of the easement dies.
Is Party Wall an example of Reciprocal Easement?
Yes. Reciprocal Easement is an agreement between two parties to use shared areas.
How do you create an easement?
A written agreement must be created between the parties. Or by Easement by Necessity or Easement by Prescription
What is an Easement by Necessity?
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.
What is Easement of Prescription?
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.
