section 5 unit 4 types of encumbrances
Why would a buyer want to know if any easements or encroachments exist on a property? a. Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value. b. Both easements and encroachments are illegal. The buyer could end up in court. c. The buyer may need this information to provide evidence for litigation. d. the buyer will have to remove these before the property can be re-sold
a. Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value.
What is the primary difference between a specific and general lien? a. General liens attach to both personal and real property; specific liens attach to the property used as collateral. b. General liens may not exceed a value of $25,000; specific liens may be for any value. c. Specific liens attach only to personal property; general liens attach only to real property. d. Specific liens attach to only real property; general liens attach to either personal property or real property.
a. General liens attach to both personal and real property; specific liens attach to the property used as collateral. Specific liens attach to the specific property against which the lien is filed; general liens may attach to both personal and real property (or both).
Which of the examples is a subordination agreement? a. Mortgage lien holder A agreed to modify the order of priority and be paid after mortgage lien holder B. b. Mortgage lien holder A agreed to pay the sales expenses in exchange for being moved up in priority. c. Mortgage lien holder A is combined with mortgage lien holder B in order to pay them concurrently.
a. Mortgage lien holder A agreed to modify the order of priority and be paid after mortgage lien holder B.
Aaron, who's in the process of selling his home, is furious. Two of the houses that have recently been built as part of a new subdivision that abuts his property are several feet over his property line. What issues may be caused by this encroachment? a. Title problems for Aaron, which may impact the sale of his home b. Inability of the buyer of Aaron's home to secure a loan, if there's an issue with the title c. Additional costs for the developer to have the two homes moved d. Costly redesign and development delays for the subdivision developer e.
a. Title problems for Aaron, which may impact the sale of his home b. Inability of the buyer of Aaron's home to secure a loan, if there's an issue with the title c. Additional costs for the developer to have the two homes moved d. Costly redesign and development delays for the subdivision developer
How can an easement be terminated? a. abandonment b. covenant c. lis pendens d. restriction
a. abandonment
Chase's ability to use his land in Cazenovia is impacted by a private agreement. This is known as ______. a. a deed restriction b. an easement by necessity c. an easement by prescription d. a party wall
a. deed restriction
Kurt bought a vacant lot in a development that was 85% completed. When he started working with the builder to lay out where the house and driveway would be, they found he would need an easement because his driveway would spill over onto the adjacent lot by a few feet. Kurt owns the _______ estate or tenement. a. dominant b. gross c. prescriptive d. servient
a. dominant
Permanent right to use another's land for the benefit of a neighbor a. easement appurtenant b. easement in gross c. easement by prescription d. easement by necessity
a. easement appurtenant
The government decides to widen roads on your street a. easement by condemnation b. party wall c. easement by necessity d. easement by prescription e. easement by grant f. easement by implication
a. easement by condemnation
What type of easement is created when the government exercises its right of eminent domain? a. easement by condemnation b. easement by grant c. Easement by implication d. easement by prescription
a. easement by condemnation
Rancher Ross was thrilled to learn he could sell his property's mineral rights to a company that's looking for oil. He didn't realize he'd also created an ______, allowing them to bring drilling equipment onto his land. a. easement by implication b. Easement by necessity c. easement by prescription d. easement by right
a. easement by implication An easement by implication is created by the parties' conduct. A mineral right is worthless unless the minerals can be accessed, so selling the right implies that Ross granted the oil company permission to bring drilling equipment onto his land.
Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? a. easement by prescription b. easement in gross c. express easement d. visible easement
a. easement by prescription
Which of the following is a claim against a person and all of his property? a. general lien b. mortgage lien c. specific lien d. universal lien
a. general lien
Lien placed against a property without the owner's consent a. involuntary b. specific c. voluntary d. general
a. involuntary
Karen's house was recently foreclosed on to pay off a lien on her home. What happens to any extra money after the lien and expenses of the sale are paid? a. it goes to Karen b. It's given to a local government-approved charity. c. The bank receives the rest as compensation. d. The state government receives the extra funds.
a. it goes to Karen
Shared portion of a structure a. party wall b. easement by grant c. easement by implication d. easement by prescription e. easement by necessity f. easement by condemnation
a. party wall
This is a shared side of a structure; each owner owns his section of the wall in severalty, with the ownership subject to an easement by the other. a. party wall b. easement by implication c. Easement by necessity d. easement by prescription
a. party wall
rights to occupy a property. a. possessory b. party wall c. non-possessory
a. possessory
Unpaid real estate property taxes a. property taxes b. mechanic's c. mortgage d. judgement
a. property taxes
mechanic's a. specific b. general
a. specific
mortgage a. specific b. general
a. specific
property tax a. specific b. general
a. specific
An easement is a right acquired by one party to use another party's land for a special purpose. a. true b. false
a. true
Easements are often part of a written agreement between the parties. a. true b. false
a. true
Lien priority based on filing date is also called "first in time, first in right." a. true b. false
a. true
Mortgage a. voluntary b. involuntary
a. voluntary
The dominant and servient land are merged into one. a. yes b. no
a. yes
The easement deadline expires. a. yes b. no
a. yes
The easement is no longer needed (e.g., a new access road is built that the dominant tenement can use). a. yes b. no
a. yes
The easement owner abandons the easement. a. yes b. no
a. yes
The easement owner releases the easement, because it's no longer needed. a. yes b. no
a. yes
Which of these describes an encroachment? a. Right to cross over or otherwise use another's land for a specified purpose b. Intrusion of a structure or object on another's land
b. Intrusion of a structure or object on another's land
Deed specifies permission a. party wall b. easement by grant c. easement by implication d. easement by prescription e. easement by necessity f. easement by condemnation
b. easement by grant
Right to use the land (not necessarily an adjoining property) a. easement appurtenant b. easement in gross c. easement by prescription d. easement by necessity
b. easement in gross
Because of the topography of Elsie's and Lawrence's respective yards, Elsie had to install her fence at the top of a hill, which is actually two feet over Lawrence's property line. What word or phrase best describes Elsie's fence? a. Easement in gross b. encroachment c. Servient estate d. visible easement
b. encroachment
Seth owns a property on a small island with six other property owners. Recently, Seth built a fishing pier along the water's edge; however, the pier is actually on his neighbor's property, which Seth has no rights to. What might this be an example of? a. easement b. encroachment c. estate d. eviction
b. encroachment
Easements are usually temporary. a. true b. false
b. false
Lien priority is always based on the filing dates of the liens. a. true b. false
b. false
Mortgage liens are always paid first, no matter the state. a. true b. false
b. false
There are six primary types of easements. a. true b. false
b. false
judgement a. specific b. general
b. general
judgement a. voluntary b. involuntary
b. involuntary
mechanics a. voluntary b. involuntary
b. involuntary
property tax a. voluntary b. involuntary
b. involuntary
A lien due to a court decree resulting from a lawsuit is called a ______. a. Estate and inheritance tax lien b. judgement lien c. lis pendens d. voluntary lien
b. judgement lien
Failure to pay for work performed on the property a. property taxes b. mechanic's c. mortgage d. judgement
b. mechanic's
Oscar bought an older home and hired a contractor to replace the old knob and tube wiring throughout the house. He was invoiced for the work, but 60 days have passed, and Oscar has yet to pay the bill. The electrician filed a lien against Oscar's house. What type of lien is this? a. HOA related b. mechanic's c. mortgage d. special assessment
b. mechanic's
The owner of the easement expires. a. yes b. no
b. no
Constructed on boundary line separating two properties a. possessory b. party wall c. non-possessory
b. party wall
Each of you owns one side of this and an easement right on the other half a. easement by condemnation b. party wall c. easement by necessity d. easement by prescription e. easement by grant f. easement by implication
b. party wall
Lien placed against a specific piece of property a. involuntary b. specific c. voluntary d. general
b. specific
Now assume a property has foreclosed, the lien has been paid off, and there is some money left over. What is the first priority for the excess money? a. It goes to the former owner of the home. b. It's donated to a charity in the name of the former owner of the home. c. It's used to pay the expenses of the sale of the property. d. The money is deposited into an escrow account and is used to help pay off other delinquent loans.
c. It's used to pay the expenses of the sale of the property. Any excess money is first used to pay the expenses of the sale of the property. After that, if there is yet more money left over, it goes to the former owner of the home.
Created by parties' conduct a. party wall b. easement by grant c. easement by implication d. easement by prescription e. easement by necessity f. easement by condemnation
c. easement by implication
Allows road access for landlocked parcel a. easement by condemnation b. party wall c. easement by necessity d. easement by prescription e. easement by grant f. easement by implication
c. easement by necessity
Which type of easement is commonly seen when land is landlocked with no access to roads? a. easement by grant b. easement by implication c. easement by necessity d. easement by prescription
c. easement by necessity
Acquired through years of use a. easement appurtenant b. easement in gross c. easement by prescription d. easement by necessity
c. easement by prescription
Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property? a. easement b. eminent domain c. encroachment d. necessity
c. encroachment
financing a home purchase a. property taxes b. mechanic's c. mortgage d. judgement
c. mortgage
easements fall into this category a. possessory b. party wall c. non-possessory
c. non-possessory rights
What's it called when lien holders allow another lien holder's claim to have priority over their own? a. equitable lien b. lis pendent c. subordination agreement d. voluntary lien
c. subordination agreement When two lien holders agree to modify lien priority, it's called a subordination agreement.
Lien created by the owner of the property a. involuntary b. specific c. voluntary d. general
c. voluntary
Which of the following options describes a subordination agreement? a. An agreement between a contractor and any subcontractors b. An agreement between a landowner and a contractor c. An agreement between the court and landowner to decrease property taxes d. An agreement between two lien holders to modify the order of lien priority
d. An agreement between two lien holders to modify the order of lien priority
What is a special lien? a. a type of mortgage lien b. a type of tax lien c. Claims against a person and all of that person's property d. Claims against a specific piece of property
d. Claims against a specific piece of property
Why is it important that all liens be paid in full before a property is sold to a new owner? a. If the liens aren't paid before the property is transferred to the new owner, the claimants will not get paid. b. If the liens aren't paid in full, the seller has to assume a loan to pay the claimants. c. If the seller does not pay the liens in full before closing, the sale agreement is terminated. d. If the property transfers to the new owner and the lien remains unpaid, the unpaid lien can trigger a foreclosure.
d. If the property transfers to the new owner and the lien remains unpaid, the unpaid lien can trigger a foreclosure.
Assume you have a situation where there is not enough money to pay off all of the lien holders. What can happen to the former owner in this case? a. The former owner may lose the property. b. The former owner will be sentenced to two years in jail. c. The former owner's wages will be garnished until the debt has been paid in full. d. The former owner might owe a debt to the lien holders who are not fully paid off.
d. The former owner might owe a debt to the lien holders who are not fully paid off. Sad but true. If there's not enough to pay off all lien holders, the former owner may face a deficiency judgment after foreclosure, which means losing the property and owing the lien holders.
Marshall is a home inspector who is walking the lot of the property he's inspecting with a survey in hand. Which of the following will he note as an encroachment on the inspection report? a. A path providing neighborhood access to a pond cuts through part of the subject property. b. The apple tree on the adjacent property drops apples onto the subject property. c. The city seized the neighboring property to be used in a street widening project. d. The neighbor installed a basketball hoop next to his driveway, six inches over the property line.
d. The neighbor installed a basketball hoop next to his driveway, six inches over the property line.
Elizabeth's property is encumbered by an easement in gross with which of these entities? a. The neighbor who constructed his new backyard fence six inches across Elizabeth's property line b. The owner of the empty lot down the street that Elizabeth uses as a vegetable garden with the owner's permission The resident of the adjoining property to whom Elizabeth has given permission to store some items in her gardening shed d. The utility company that needs to access the power line that crosses a corner of Elizabeth's land
d. The utility company that needs to access the power line that crosses a corner of Elizabeth's land
Eloise is interested in buying a bungalow on the outskirts of the city. Her agent is reviewing the property details and informs her that there are several easements on the property. In particular, the gas company has a right of way because the natural gas line for the neighborhood runs through the back of the lot. What type of easement would this be? a. Easement appurtenant b. easement by necessity c. easement by prescription d. easement by gross
d. easement by gross
This usually involves access to a road a. easement appurtenant b. easement in gross c. easement by prescription d. easement by necessity
d. easement by necessity
Has been using neighbor's land as orchard for 50 years a. easement by condemnation b. party wall c. easement by necessity d. easement by prescription e. easement by grant f. easement by implication
d. easement by prescription
No permission/statutory period a. party wall b. easement by grant c. easement by implication d. easement by prescription e. easement by necessity f. easement by condemnation
d. easement by prescription
Lien placed against all property belonging to an individual a. involuntary b. specific c. voluntary d. general
d. general
Failure to pay monetary damages from a lawsuit a. property taxes b. mechanic's c. mortgage d. judgement
d. judgement
Nellie and Victor own a suburban ranch home and fell behind on paying their property taxes when Victor lost his job last year. Victor is working again, but they still haven't saved enough to pay their back taxes. They're worried that the county may begin foreclosure proceedings. What type of lien is this? a. attachment b. general c. special assessment d. specific
d. specific Property tax liens are specific, because they represent a lien against a specific piece of property.
Conveys land but reserves access to archery range a. easement by condemnation b. party wall c. easement by necessity d. easement by prescription e. easement by grant f. easement by implication
e. easement by grant
Common with landlocked parcels a. party wall b. easement by grant c. easement by implication d. easement by prescription e. easement by necessity f. easement by condemnation
e. easement by necessity
a right held by one property owner to make use of the land of another for a limited purpose
easement
a permanent right to use another's land for the benefit of a neighboring parcel
easement appurtenant
this type of easement is terminated when the reason for the easement no longer exists, such as when a new road is built that reaches a previously landlocked parcel.
easement by necessity
a permanent right to use another's land because you've been doing so for a statutory period of time
easement by prescription
this type of easement is the right to use the land of another and does not involve any adjoining estate. utility companies often make use of these easements.
easement in gross
when a building, shrub, fence, etc., illegally crosses over into another's property. can lead to a claim of adverse possession or an easement by prescription
encroachment
Created by eminent domain a. party wall b. easement by grant c. easement by implication d. easement by prescription e. easement by necessity f. easement by condemnation
f. easement by condemnation
If you sell your oil rights, they figure they can drill for oil a. easement by condemnation b. party wall c. easement by necessity d. easement by prescription e. easement by grant f. easement by implication
f. easement by implication
claims against a person and all that persons property. this type of lien occurs as a judgement against that person.
general lien
the IRS will file a general lien against all property belonging to that person for various taxes owed and unpaid
income tax liens
a lien created without the property owners consent (e.g. property tax, mechanics lien)
involuntary lien
a lien due to a court decree result from a lawsuit
judgement lien
not classified as an encumbrance, this is temporary right to enter the land or use property belonging to another for a specific purpose.
license
A creditor's legal right to have their debt paid out of the property of a defaulting debtor, usually by a court sale
lien
a legal notice that a lawsuit is pending that affects the title of a property. this serves as warning to prospective buyers that a pending lawsuit could impact title.
lis pendens
when a property owner doesn't pay for work that was performed, the worker can file this lien to collect the money that is owed to them.
mechanics lien
a lien created on the property used as collateral for a loan to purchase a home.
mortgage lien
easements fall into this category of rights
non-possessory
shared between two buildings and constructed on the boundary line between two owner's lots
party wall
rights to occupy the property
possessory
when an owner does not pay property taxes a lien is levied against that property.
property tax lien
claims against a specific property, identifiable property (the most common type of this lien is a mortgage)
specific (or special) lien
created by the property owner or with the property owners consent
voluntary lien
