Section 4, Encumbrance

mortgage

A lien that is created by contract between the property owner and a lender. The owner gives the lender the mortgage as security for repayment of the loan, so that the property serves as collateral. Voluntary and specific type of lien. The owner is referred to as the mortgagor. The lender is the mortgagee.

lis pendens

A lis pendens is not a lien. Instead, it is a legal document that notifies anyone who purchases the affected property about the pending lawsuit. The new owner would then be bound by any judgment resulting from the lawsuit.

Encumbrance

A person who has an encumbrance has a claim against the property, but doesn't have the right to exclusive possession of it in the way that an owner or a tenant does. They are nonpossessory interests in real property—interests that don't include ownership or possession of the property. Nonpossessory interests are called encumbrances because they encumber the owner's title

A local charitable organization obtained the right to put a billboard on Sam's property. Sam most likely gave it a/an: Select your answer below: A.easement in gross B.easement appurtenant C.prescriptive easement D.easement by necessity

A: An easement in gross benefits a party, not a parcel of land.

Easement in Gross

An easement in gross benefits a particular person rather than a parcel of land. This cannot be reassigned to another person and when the person tied to this has passed, it will be extinguished.

The government exercises its power of eminent domain to create an easement for a public purpose.

An easement is created by condemnation when the government exercises its power of eminent domain to condemn private property to establish an easement for a public purpose.

Dedication

An easement is created by dedication if a private owner donates easement rights to the government. Long-term public use can result in implied dedication, and the government won't be required to compensate the private owner.

A private landowner grants an easement to the public to use a portion of his property.

An easement is created by dedication when a private landowner grants an easement to the public.

A grantor is conveying the half of her land that's next to the street, and she needs to create an access easement for herself.

An easement is created by express reservation when a landowner divides her property and sells the servient tenement, reserving an easement for herself in the deed.

A lien that may be claimed by a person who provided materials to a building site if the materials are not paid for.

Construction Lien: A lien against property in favor of someone who provided labor or materials to improve it is called a construction lien.

Alex owns 35 acres of vacant land that he would like to deed to a local wildlife conservancy. However, a title search reveals that timber rights and an easement to use the property were sold to Giant Lumber Company in 1963. Since this lumber company went out of business in 1987, Alex should:

Even though the original easement holder no longer exists, a commercial easement in gross can be assigned. So the easement rights may have been transferred to another company, and it would be prudent to ask an attorney to investigate.

A creditor who has a lien against a debtor's real property is called a liened creditor. T/F

FALSE: A creditor with a lien is called a secured creditor.

A judgment creditor can foreclose on a homestead if the gross value of the property is greater than $125,000. T/F

FALSE: A judgment creditor can foreclose on a homestead if the property's net value (not gross value) is greater than $125,000.

The priority of a lien is based on the amount of the lien. In the event of foreclosure, the larger the lien balance, the higher its priority. T/F

FALSE: As a general rule, lien priority is based on the recording date: first to record, first in right.

The priority of a construction lien is determined by its recording date. T/F

FALSE: The priority of a construction lien depends on the date the work started.

Requirements for Easement by prescription

The use must be open and notorious (conspicuous to the owner). The use must be hostile (without the owner's permission). The use must be reasonably continuous for the length of time required by statute (in Washington, ten years)

Homestead Law

This means a judgment creditor can't foreclose on a homestead unless the property's net value is more than $125,000. The net value is the market value minus the total amount of the senior liens—those that have higher priority than the lien being foreclosed on. Note* Judgement Creditor, not a mortgage creditor. Doesn't Protect Against Mortgages or Deeds of Trust Construction Liens Child Support or Spousal Maintenance Liens

Lien Priority

This rule determine how the proceeds of a foreclosure sale will be applied if they are insufficient to pay off all the liens against the property. The lien priority of mortgages and deeds of trust is generally established by recording date. 'First in time is first in right.'

Voluntary Liens

Voluntary liens are liens the property owner agrees to in a contract: a mortgage or deed of trust lien.

A court order creating a lien against a defendant's property, so that it will be available to satisfy a judgment if the plaintiff wins.

Writ of Attachment : A court order that makes a defendant's property available to satisfy a judgment is a writ of attachment.

easement by necessity

a court may still declare an easement if it is strictly necessary because there is no other way to reach a landlocked parcel

An easement appurtenant, sometimes called an appurtenant easement

burdens one piece of land for the benefit of another piece of land.

The _______________ is the individual who benefits from the existence of an easement

dominant tenant

The easement is appurtenant to the _______________.

dominant tenement

The land that receives the benefit of the easement is called

dominant tenement

commercial easement in gross

held by a company for business purposes, rather than by an individual for personal purposes. The most common example is a utility easement, which allows a utility company to enter someone's property to install and repair utility lines. A commercial easement in gross may be assigned from one entity to another.

easement by prescription—also called a prescriptive easement.

is established by long, continuous use of someone else's property without the owner's permission. This is similar to the process of gaining title to property through adverse possession.

A lender who accepts a mortgage as security for repayment of a loan.

mortgagee

runs with the land

ordinarily continues to exist even after title to either of the properties changes hands.

The holder of an easement has a _______________ right

use

Construction Lien

A construction lien is an involuntary, specific lien that can be claimed by someone who provides labor or materials for improvements on real property.

Homestead Exemption

A homestead is an owner-occupied dwelling. In Washington, up to $125,000 of the value of a homestead is automatically protected against foreclosure of judgment liens. If the homestead is sold, up to $125,000 out of the sale proceeds remains exempt for one year.

General Lien

A lien attached automatically to all property within the county

Specific Lien

A lien attached to a specific property.

Property is divided into more than one lot and the grantor neglects to create an easement on one lot for the benefit of the other.

An easement may arise by Easement by implication when a property is divided into more than one lot and the grantor neglects to grant or reserve an easement on one lot for the benefit of the other.

An easement is created by long, continuous use of another's land without the owner's permission.

An easement may be created by prescription when property belonging to another is used openly and without the owner's permission for the period prescribed by statute.

Judgement Lien

An involuntary, general lien held by someone who was awarded a judgment in a lawsuit. It attaches to all of the judgment debtor's property in the county where the judgment was entered, or where an abstract of judgment is recorded.

An easement for ingress and egress that is created by a court of law where it is reasonably necessary for the enjoyment of the property is an easement: Select your answer below: A.appurtenant B.by necessity C.by prescription D.in gross

B.by necessity A court may find that an easement by necessity (or easement by implication) is created where it is reasonably necessary for enjoyment of the property, and there was apparent prior use. This may occur where a grantor divides a property into more than one lot, and forgets to grant or reserve an easement for the benefit of the new lot. A court-created easement doesn't necessarily run with the land, meaning the easement might not be appurtenant.

two basic requirements for an easement by implication.

First, the easement must be reasonably necessary for the enjoyment of the dominant tenement. Second, there must have been apparent prior use at the time of the sale.

In Washington, To establish homestead protection, the property owner must record a declaration of homestead. T/F

Homestead protection begins automatically when the homeowner moves into her home.

writ of execution

If the judgment is not paid off, the court may order that the debtor's property be sold in order to satisfy the judgment.

Construction Lien Priority

In Washington, a construction lien's priority is not established by the date the claim was recorded. Instead, it is established by the date the claimant began working on or supplying materials for the project.

Lien Expires

In Washington, the lien expires ten years after the judgment was entered.

Surplus

In a foreclosure, there may be a surplus left over after the proceeds have been used to pay foreclosure costs and all of the liens against the property. The surplus belongs to the debtor.

Deed of Trust

Like a mortgage, this is a voluntary, specific lien that makes the property security for a loan. The key difference between a mortgage and a deed of trust concerns the method of foreclosure.

Tax Liens

Property tax liens and special assessment liens are exceptions to the 'First in time' rule. They are superior to all other liens.

A statutory lien is an involuntary lien. T/F

TRUE

A lien that attaches to property with the owner's consent is called a voluntary lien. T/F

TRUE: A lien that attaches to property with the owner's consent is called a voluntary lien.

A specific lien attaches only to a specific piece of property, rather than all of the debtor's property. T/F

TRUE: A specific lien attaches only to a specific piece of property.

A secured creditor's remedy in the event of default is foreclosure. T/F

TRUE: Foreclosure is the secured creditor's remedy in the event a debtor defaults.

A mortgage signed on March 10 but not recorded would have lower priority than a mortgage that was signed and recorded on March 17. T/F

TRUE: The priority of a mortgage is based on its recording date, not the date it was signed.

IRS Lien / Tax Lien

Taxation results in various types of involuntary liens. Property tax liens and special assessment liens are specific liens against the taxed property. IRS liens are general liens against all of the delinquent taxpayer's property.

Attachment Lien

The lien prevents the defendant from selling the property during the trial to avoid paying any judgment the plaintiff might win.

Construction Liens

The priority of a construction lien is determined by the date the claimant began working on the property.

Condenmation

Through the condemnation process, the government can force a private property owner to grant it an easement. The easement must be needed for a public purpose, and the government must compensate the private owner.

A court order directing a public official (usually the sheriff) to seize and sell property to satisfy a debt.

Writ of Execution: The sherriff seizes property pursuant to a writ of execution.

easement

a right to use someone else's land for a particular purpose. The easement holder (the person who has the easement) has a nonpossessory interest in that other person's property. From the property owner's point of view, the easement is an encumbrance that burdens her title.

easement for ingress and egress

an easement for ingress and egress, which means entering and exiting

The lender in a deed of trust transaction.

beneficiary

A/an _______________ burdens one parcel of land for the benefit of another parcel of land.

easement appurtenant.

A commercial easement such as a utility easement is an example of a/an _______________.

easement in gross.

statute of frauds

must be in writing and signed by the grantor.

The land burdened by an easement in gross is called the _______________.

servient tenement

The land burdened by the easement

servient tenement.

express grant

when a property owner executes a document granting someone else an easement on her property.