Unit 2: Encumbrances

Question 1

What is an encumbrance?

Answer 1

Any claim, right, or interest held by a party who is not the owner of the property.

Question 2

What are the 4 kinds of encumbrances?

Answer 2

1) Easements
2) Liens
3) Deed Restrictions
4) Encroachments

Question 3

What is an easement?

Answer 3

The right to use the lands of another for a specific purpose.

Question 4

How does an easement transfer?

Answer 4

Through a deed.

Question 5

T/F An easement can be revoked by the grantor.

Answer 5

False. An easement is IRREVOCABLE once given.

Question 6

What are the 3 types of easements?

Answer 6

1) Appurtenant Easement
2) Easement in Gross
3) Easement by Necessity

Question 7

T/F A driveway across a neighbor’s land is an example of an appurtenant easement.

Answer 7

True

Question 8

T/F Power lines on a property are an example of an easement in gross.

Answer 8

True

Question 9

Why would an easement by necessity be granted by the courts?

Answer 9

To prevent the creation of a landlocked property.

Question 10

T/F Easement by necessity can be granted to governments.

Answer 10

False. Easements by necessity can ONLY be granted to PRIVATE OWNERS.

Question 11

What are the 3 ways an easement can be terminated?

Answer 11

1) Abandonment
2) Release
3) Merger

Question 12

How can an easement be released?

Answer 12

Via a quitclaim deed.

Question 13

What are deed restrictions?

Answer 13

Privately created controls on land use that protect property values and the interests of property owners.

Question 14

T/F A homeowner’s association is an example of deed restrictions.

Answer 14

True

Question 15

What is a lien?

Answer 15

A claim that attaches to and is binding on property to secure debt payment.

Question 16

What are the 2 ways a lien can be resolved?

Answer 16

1) Lien waver releases UNRECORDED lien

2) Satisfaction recording releases RECORDED lien

Question 17

What kind of lien takes priority over all other liens?

Answer 17

Property tax also known as special assessments lien

Question 18

What are the different groupings of liens?

Answer 18

1) General or Specific

2) Voluntary or Involuntary

Question 19

What is the difference between a general and specific lien?

Answer 19

A general lien is against all assets (personal and real) of a debtor. A specific lien is against a particular property.

Question 20

T/F A judgement, state, or IRS liens are an example of a general lien.

Answer 20

True

Question 21

What are examples of a specific lien?

Answer 21

Property tax, mechanics, mortgage, and HOA assessments.

Question 22

What is an encroachment?

Answer 22

The unauthorized use of another person’s land or a physical object intruding onto a neighboring property.

Question 23

T/F A survey can find encroachments.

Answer 23

True