Types of Encumbrances

Question 1

any claim or lien on the property held by another person or entity that limits the owner’s use or
rights or decreases the value of the property

Answer 1

encumbrance

Question 2

A lien due to a court decree resulting from a lawsuit

Answer 2

Judgment Lien

Question 3

A legal notice that a lawsuit is pending that affects the title of a property. This serves as warning to prospective buyers that a pending lawsuit could impact title.

Answer 3

Lis Pendens

Question 4

The IRS will file this against all property belonging to that person for various taxes owed and unpaid.

Answer 4

Income Tax Liens

Question 5

Created by the property owner or with the property owner’s consent

Answer 5

Voluntary Lien

Question 6

When a property owner doesn’t pay for work that was performed the worker can file this lien to collect the money owed to them.

Answer 6

Mechanic’s Lien

Question 7

A lien created without the property owner’s consent (e.g., property tax lien or mechanic’s lien)

Answer 7

Involuntary Lien

Question 8

Claims against a person and all of that person’s property. This type of lien occurs as a judgment against that person.

Answer 8

General Lien

Question 9

Claims against a specific property, identifiable property (the most common type of this lien is a mortgage)

Answer 9

Specific (or special) lien

Question 10

A lien created on the property used as collateral for a loan to purchase a home

Answer 10

Mortgage Lien

Question 11

When an owner does not pay property taxes a lien is levied against that property

Answer 11

Property Tax Lien

Question 12

When liens are given priority based on when they’re filed

Answer 12

First in time, first in right

Question 13

Which lien takes top priority

Answer 13

assessments and tax liens

Question 14

certain kinds of liens automatically go to the head of the line regardless of when they were filed. i.e.: HOA related liens

Answer 14

Super lien states

Question 15

A lien holder will agree to modify the order of priority.

Answer 15

subordination agreement

Question 16

If there’s not enough to pay off all lien holders, the owner will lose the property and owe the lien holders.

Answer 16

deficiency judgment

Question 17

a type of encumbrance that can affect the usage of a property

Answer 17

Easements

Question 18

The permanent right to use another’s land for the benefit of a neighbor.

Answer 18

Easement appurtenant

Question 19

A right to use the land (does not necessarily involve an adjoining property). Examples would be
utility lines.

Answer 19

Easement in gross

Question 20

What are the two main categories of easements?

Answer 20

Easement appurtenant and Easement in gross

Question 21

What are the two main types of easements:

Answer 21

Easement by necessity and Easement by prescription:

Question 22

This is an easement acquired through years of use-one person acquires the permanent right
to use another’s property by doing so for a period of time. Use must be hostile, open, exclusive, and notorious.

Answer 22

Easement by prescription

Question 23

Usually this involves access to a road; without such an easement, the owner requiring the right
of passage would be landlocked.

Answer 23

Easement by necessity

Question 24

right to cross neighbor’s property to access the road.

Answer 24

dominant tenement

Question 25

The owner who gives the right to cross to neighbor

Answer 25

servient tenement

Question 26

This type of easement is terminated when the reason for the easement no longer exists, such as when a new road is built that reaches a previously landlocked parcel.

Answer 26

Easement by necessity

Question 27

Shared between two buildings and constructed on the boundary line between two owner’s lots

Answer 27

Party Wall

Question 28

Rights to occupy the property

Answer 28

Possessory

Question 29

When a building, shrub, fence, etc., illegally crosses over into another’s property. Can lead to a claim of adverse possession or an easement by prescription.

Answer 29

Encroachment

Question 30

Not classified as an encumbrance, this is a temporary right to enter the land or use property belonging to another for a specific purpose.

Answer 30

License

Question 31

Easements fall into this category

Answer 31

Non-Possessory

Question 32

Ways an easement can be terminated

Answer 32

The easement owner may release the easement if it is no longer needed
A dominant and servient land could be merged into one parcel
The easement owner could abandon the easement
The necessity of an easement by necessity could be terminated (e.g., by building a new access road for the dominant
tenement)
An easement with a deadline could expire

Question 33

permission to do something on another’s land without actually possessing any interest or ownership in the land.

Answer 33

license

Question 34

To enter

Answer 34

Ingress

Question 35

To exit

Answer 35

Egress