Encumbrances

Which of the following is created when real estate is pledged as security for a loan? A. An easement B. A restriction C. A lien D. An encroachment

A lien. A lien exists when property is security for a debt.

A statement was included in the deed which limited the use of the property to single family dwelling units. Which of the following was created by that statement? A. A restrictive covenant. B. A profit. C. A license. D. A prescriptive easement.

A restrictive covenant. Restrictions include covenants and conditions. A covenant is a promise to do or not to do something. A condition is a requirement that must be met in order for title to remain with the owner.

Restrictions on property owners in a subdivision development are sometimes called: A. covenants. B. encroachments. C. easements appurtenant. D. zoning constraints.

Covenants. Restrictions include covenants and conditions. A covenant is a promise to do or not to do something. A condition is a requirement that must be met in order for title to remain with the owner. (Think CC&R's)

A deed to real property has the statement "subject to an easement." The term "subject to" would mean the burdened land is: A. appurtenant. B. a liability. C. encumbered. D. restricted.

Encumbered. The easement would be an appurtenance to the dominant estate (the property owned by the easement holder). It would be considered a burden (encumbrance) on the property (the servient estate) that is being used, i.e. that is subjected to the easement.

Deed restrictions are considered to be: A. encumbrances. B. general liens. C. constructive notice. D. enforceable only by the property's owner.

Encumbrances. An encumbrance is anything binding on real property that may burden or impair the use of the property. A deed restriction is one type of encumbrance.

A form of public notice filed against certain lands, setting forth that court action has been instituted, is known as a(n): A. construction lien. B. attachment. C. lis pendens. D. judgment.

Lis Pendens. A lis pendens is a recorded legal document that gives constructive notice that an action affecting a particular piece of property has been filed in a state or federal court.

A deed limitation on the use or enjoyment of real property is a(n): A. option. B. restriction. C. easement. D. license.

Restriction. A restriction is a limitation on the use or enjoyment of property.

Deed restrictions may be created by: A. a planning commission. B. the federal Department of Housing and Urban C. Development. C. the grantor in the deed. D. zoning boards.

The grantor in the deed. Deed restrictions are imposed by the seller (the grantor).

A personal, revocable, nonassignable right to use the property of another is called a(n): A. option. B. lease. C. easement. D. license.

license. A license is a personal, revocable, and nonassignable right to use another's land for a specific purpose. It may be given orally or in writing. An easement differs in that it is an irrevocable right to use another's land for a specific purpose and, if given, must be in writing.

The servient estate in regard to an easement appurtenant is the property: A. owned by the landlord. B. upon which the easement is placed. C. that benefits from the easement. D. owned by the tenant.

upon which the easement is placed. The servient estate serves the dominant estate. The dominant estate is the one holding the right to use the servient estate.

A money judgment of the court, when recorded, always becomes a(n): A. involuntary lien. B. special lien. C. superior lien. D. equitable lien.

Involuntary lien. Liens that are created by agreement of the parties are voluntary liens. A mortgage, therefore, is a voluntary lien. It only exists if the borrower agrees to offer his or her property as security for repayment of the loan. Liens created by operation of law, such as property tax liens, special assessments, judgment liens, and construction (mechanic's) liens, are involuntary. A judgment lien covers all property of the debtor and would, therefore, be a general lien, not a special (specific) lien.

A seller sold an acre and reserved an easement appurtenant for ingress and egress to enable him to reach the public road. The buyer's land: A. is called the dominant tenement. B. is subject to an easement in gross. C. is called the servient tenement. D. can be cleared of the easement when the seller sells the adjacent acre to a third party.

Is called the servient tenement. The servient estate is burdened (encumbered) by the easement. Because the easement is irrevocable, it cannot be terminated due to inconvenience or hardship on the owner of the servient estate.

After a developer has sold all the lots in a subdivision in which he had established deed restrictions limiting the lots to single-family residential use, subsequent action to enforce the restrictions must be initiated by: A. the developer, exercising his rights as a grantor of a quitclaim deed. B. a lot owner looking to a court of equity for an injunction. C. the Land Conservation and Development Commission D. the county zoning and planning commission.

a lot owner looking to a court of equity for an injunction. Deed restrictions may be enforced by the property owners benefiting from the restriction. Therefore, other lot owners can sue a violator for damages or for an injunction to stop the violation. The planning commission has no ability to enforce private restrictions.

Which of the following is an encumbrance, but not a lien? A. Mortgage B. Deed restriction C. Trust deed D. Property taxes

deed restriction. Liens make the property security for a debt. They include mortgages, trust deeds, mechanic's liens, attachments, judgments, property taxes, etc. Restrictions affect the use of the property and therefore are encumbrances but are not liens.

When a deed contains a clause that prohibits the future sale of property to persons of a minority race, that clause will: A. allow the grantor the right to enforce that restriction. B. create a cloud on the title. C. invalidate the conveyance. D. have no effect on the conveyance, and the clause will be unenforceable.

have no effect on the conveyance, and the clause will be unenforceable. Deed restrictions that prohibit use by persons based on race, religion, sex, national origin, etc., are unenforceable regardless of when they were created.

A parcel of real property had subdivision restrictions placed against it in 1940. These deed restrictions prohibit the sale of the property to anyone of the Caucasian race. By the terms of these deed restrictions, they were to expire in 1996. These deed restrictions were: A. invalid, even if the owner agreed. B. valid until 1996. C. invalid because they were filed prior to 1964. D. valid because they were filed in 1940.

invalid, even if the owner agreed. Deed restrictions that prohibit use by persons based on race, religion, sex, national origin, etc., are unenforceable regardless of when they were created.

The penalty for violation of a deed restriction, also called a covenant, is: A. more harsh than for violation of a condition set forth in a deed. B. the same as for violation of a condition set forth in a deed. C. less harsh than for violation of a condition set forth in a deed. D. none of these.

less harsh than for violation of a condition set forth in a deed. The penalty for violation of a covenant is damages. The penalty for violation of a condition is loss of title.

The permissive use of a road across real property would cause a prescriptive easement in: A. 5 years. B. 10 years if the user pays the taxes. C. 20 years. D. none of these.

none of these To acquire an easement by prescription, the use must be hostile (without permission).