Unit 2: Encumbrances Flashcards
What is an encumbrance?
Any claim, right, or interest held by a party who is not the owner of the property.
What are the 4 kinds of encumbrances?
1) Easements
2) Liens
3) Deed Restrictions
4) Encroachments
What is an easement?
The right to use the lands of another for a specific purpose.
How does an easement transfer?
Through a deed.
T/F An easement can be revoked by the grantor.
False. An easement is IRREVOCABLE once given.
What are the 3 types of easements?
1) Appurtenant Easement
2) Easement in Gross
3) Easement by Necessity
T/F A driveway across a neighbor’s land is an example of an appurtenant easement.
True
T/F Power lines on a property are an example of an easement in gross.
True
Why would an easement by necessity be granted by the courts?
To prevent the creation of a landlocked property.
T/F Easement by necessity can be granted to governments.
False. Easements by necessity can ONLY be granted to PRIVATE OWNERS.
What are the 3 ways an easement can be terminated?
1) Abandonment
2) Release
3) Merger
How can an easement be released?
Via a quitclaim deed.
What are deed restrictions?
Privately created controls on land use that protect property values and the interests of property owners.
T/F A homeowner’s association is an example of deed restrictions.
True
What is a lien?
A claim that attaches to and is binding on property to secure debt payment.
What are the 2 ways a lien can be resolved?
1) Lien waver releases UNRECORDED lien
2) Satisfaction recording releases RECORDED lien
What kind of lien takes priority over all other liens?
Property tax also known as special assessments lien
What are the different groupings of liens?
1) General or Specific
2) Voluntary or Involuntary
What is the difference between a general and specific lien?
A general lien is against all assets (personal and real) of a debtor. A specific lien is against a particular property.
T/F A judgement, state, or IRS liens are an example of a general lien.
True
What are examples of a specific lien?
Property tax, mechanics, mortgage, and HOA assessments.
What is an encroachment?
The unauthorized use of another person’s land or a physical object intruding onto a neighboring property.
T/F A survey can find encroachments.
True
