Encumbrances in Real Property

Samples of Encumbrance

*An Unpaid Property tax lien *A neighbor's fence that crosses the property line *An easement that allows the power company to access a utility pole

Sample of NOT Encumbrance

*Overgrown weeds in the yard *A noisy neighbor *A pool within the property lines

What are the 2 types of Encumbrances

1 Monetary ie Lien 2 Physical

Non possessory rights

A situation in which a person holds an interest in another person's property without actually owning any part of the property such as a common driveway.

encroachment

An unauthorized invasion or intrusion upon another's property

Deed Restrictions

Clauses in a deed limiting the future uses of the property.

An authorized physical restriction on a property's use

Easement

An unauthorized, affixed intrusion into another's property

Encroachment

An encumbrance is a claim on a property that increases the value of the property. (true or false)

False

Real estate can't be transferresd with any kind of encumbrance (True / False)

False.

A debt against a property

Lien

Physical Encumbrances

Restrictions Easements Licenses

An encumbrance is a claim on a property held by another person or entity that limits the owner's use or rights.

True

Encumbrances can be physical or monetary.

True

lien (Monetary Encumbrances)

a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Example of Encumbrance

an easement allows another person to cross the owner's property. This encumbers the property by limiting its use (for instance, the owner couldn't put a fence up barring access to the easement), and may diminish its value. However, the property can still be sold, with the new owner being equally encumbered.

CC&R'S (Covenants, Conditions and Restrictions)

are the usage limitations imposed on owners/shareholders of a community housing such as a homeowner's association, cooperative, condominium association.

encumbrance

is any claim or lien held by another person or entity against the property that limits the owner's use or rights, or decreases the property value. Encumbrances impact the title to real estate, but in most cases, real estate can be transferred even with the encumbrance.

Possessory Right

rest with Property owner

Easement (2 types)

the right to use land for a specific and limited purpose 1. Non-possessory rights 2. Possessory right ie driveway