Encumbrances

Easement is not terminated:

1. at the will of, or revoked by, the possessor of the servient estate. 2. by the sale of either the dominant estate or the servient estate, even if it is not mentioned in the deed transferring the title to the dominant estate. 3. merely because it created an inconvenience to the servient tenement impinging on the quiet enjoyment of the property.

Condition

A condition is a restriction that provides for ownership of the property to revert to the former owner if the condition is violated. It creates a defeasible fee estate.

Covenant

A covenant is a promise to do or to not do something: - Subdivisions have covenants that establish set back lines, limit types of structures that may be built, etc. - Persons adversely affected by a violation of a covenant, those (benefiting) from the restriction, may sue for damages or seek an injunction to force correction of the violation.

Quiz ?:

A deed to real property has the statement "subject to an easement." The term "subject to" would mean the burdened land is appurtenant. a liability. encumbered. - Correct restricted. Incorrect. 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.

Judgement Lien

A judgment lien is a general involuntary lien resulting from a judgment in personam (against a person). The judgment is a court order resulting from a lawsuit, to enforce a contractual or legal right to receive a payment of money due, determining that a person is indebted to another and fixing the amount of the indebtedness. Because the lien is against the person, it is a lien against all of that person's property (real and personal), rather than any particular items. A judgment becomes a lien upon any of the judgment debtor's real and personal property in the county in which it is recorded. It remains a lien against that property for the number of years specified by state law, from the time the judgment is rendered. During the lien period, the judgment debtor cannot convey clear title to his real property, unless the lien is satisfied, as the judgment would remain on the property even if the property were sold. If the debtor can satisfy the judgment before it is enforced, he would obtain from the creditor a satisfaction of judgment and record it to show that the judgment has been paid and is no longer a lien on the debtor's real property. Any time during the lien period and before the judgment is satisfied, the judgment creditor may seek to have the judgment enforced by a process referred to as execution. The creditor would ask the court for a writ of execution, ordering the sheriff to sell the debtor's property to satisfy the judgment. Normally, all of the judgment debtor's personal and real property would be subject to the execution, except for items exempt by law (such as, clothes, household goods, or cars below certain values).

License

A less formal right to use another's property is a license. A license is a personal, revocable, nonassignable right to use the property of another. Because it is personal, it could be terminated by death of either party and by sale of the property. It gives a person permission to use land for some limited purpose, but gives no other rights in that land. It is like a noncommercial easement in gross, except that it is revocable and need not be in writing. For Example - A right, given orally, to enter upon the property of another to have a shortcut to a park bordering the property would be a license. If the same right were granted in writing as an irrevocable right, it would be an easement in gross.

Licenses

A less formal right to use another's property is a license. It may be created in writing, orally, or by implication, to give a personal, revocable and nonassignable right to use another's land for some limited purpose, with no other rights in that land.

Negative Easement

A negative easement is a right held by the dominant estate, which restricts the use of the servient estate. This would include: a view easement prohibiting the owner of the servient estate from constructing or growing anything which would block the view from the dominant estate. a solar easement prohibiting blockage of the sun's rays from reaching a portion of the dominant estate. an aviation easement prohibiting the owner of a servient estate near an airport from doing anything to interfere with flight patterns.

Special Assessment

A special assessment is a governmental lien placed against real property to pay all or part of the cost of a local improvement that will benefit the property. Cities, towns, and counties have the right to make local improvements based on the request of the property owners, or without their consent when the improvements are in the public interest. Such improvements include paving and creating curbs, sewers, and sidewalks; installing water mains, drains, sewers, street lighting, and other items. If the property owner does not payfor the work in a lump sum payment, the cost becomes a lien as of the time the assessment is determined and remains a lien until it is paid in full.

SPECIFIC LIENS

A specific (or special) lien is an encumbrance against one or more specified parcels of real estate. A mechanic's lien, a property tax lien, a special assessment, or a mortgage applying to three parcels would be a specific lien.

VOLUNTARY LIENS

A voluntary lien is a contractual lien. It is created by a voluntary contract, such as a mortgage or a deed of trust, entered into by the debtor and creditor. A mortgage would create an encumbrance in the form of a voluntary lien against the property by pledging the property to secure the debt.

Affirmative easement

An easement appurtenant may be an affirmative easement or a negative easement. An affirmative easement is a right to physically use the servient tenement. It could be: a party wall connecting adjoining townhouses. a right of way providing ingress and egress over an adjoining parcel. an easement to run a sewer line across neighboring property.

quiz ?:

An easement appurtenant to real property can be terminated by all of the following EXCEPT merger of both the servient and dominant parcels. revocation by the servient owner. - CORRECT prescription by the servient owner. release by the dominant tenement owner. Incorrect. 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 estates. An easement may be terminated when the owner of the easement releases his interest by means of a quitclaim deed. It may also be terminated by merger (the dominant and servient estates being owned by the same owner), by voluntary abandonment by the owner of the dominant estate, by the easement being taken by eminent domain, by loss by prescription or adverse possession, by expiration of the time period set for the easement, by cessation of the purpose for which the easement was created, or (only in the case of an easement by prescription) by nonuse. The servient owner cannot revoke the easement.

Easement vs. Lien

An easement is an encumbrance, but it is not a lien, as it does not involve money. Because the easement belongs to someone other than the owner of the land on which it lies, the easement is an encumbrance on the title to that land. As a result, that property would be subject to the easement. Land that is subject to, and therefore encumbered by, the easement is called a servient estate or servient tenement. Because the easement is irrevocable, the owner of servient tenement cannot terminate the easement, even if the easement causes him great inconvenience. Furthermore, sale of the servient tenement has no effect on the easement. The purchaser of a servient tenement would receive title encumbered by the easement, even if it is not mentioned in the deed. Depending on who has the easement right, an easement may be an easement in gross or an easement appurtenant.

Easements

An easement is an irrevocable right that gives the holder the right to limited use of all or a portion of another's land for a specific purpose. The land burdened or encumbered by any easement is called the servient estate. An easement giving a person the right to use another's land, such as a right of way held by a public utility company, is called an easement in gross. An easement belonging to a parcel of real property is called an easement appurtenant, as it is appurtenant to the land benefiting from it (the dominant estate), and transfers or runs with the property when it is sold. The servient and dominant estates need not be adjoining.

EASEMENT

An easement is an irrevocable right to use all or a portion of another's land for a specific purpose. It is a nonpossessory right, as it gives the holder the right to limited use, but not to possession, of another's real property. For Example - The owner of property A was given a permanent right to cross over property B. While his legal rights include the right of use and enjoyment of the land for passage, they fall short of ownership of, or an estate in, the land belonging to owner B. Because an easement is a right to use and not to possess, it is usually nonexclusive. The landowner has the right to use the portion of the land on which the easement lies in any manner that does not interfere with the rights of the easement holder. For Example - The electric company and telephone company have easements to run their lines across the back of Smith's lot. Smith still has the right to use that portion of his land as long as he does not disturb those lines or interfere with the right of the companies to maintain and repair those lines.

Creating an easement

An easement may be created in the following ways: 1. Express grant. The holder of the servient estate grants the easement in writing, either in a deed or a written agreement between the parties. This could be considered an easement created by mutual agreement. 2. Express reservation. The grantor of the property reserves an easement in the property being conveyed. 3. Eminent domain (condemnation). The government, private utilities and public transportation companies may take easements in private property if the property owner will not give them voluntarily, as long as fair compensation is provided. 4. Dedication. A subdivider must dedicate streets and other areas in a subdivision to the government and easements to utility companies in order to receive subdivision approval. 5. Implication. This results when an easement is not specified but is obviously necessary for a person to exercise rights received by grant or reservation, e.g., in most states a person can be sold mineral rights, and if no easement is specified to allow him to get to the minerals, an easement is implied. 6. Necessity. An easement by necessity is a type of implied easement, created when justice or necessity make it necessary that an easement be provided for access (ingress and egress) to and from the property. 7. Prescription. This is unauthorized, nonexclusive, open, notorious and visible, hostile, continuous and uninterrupted use of another's property for a period set by state statute. It may result in the user obtaining an irrevocable right to continue the use, called a prescriptive easement or easement by prescription.

Terminating an Easement

An easement may be terminated in the following ways: 1. Written release signed by the easement holder (i.e., the holder of the dominant estate or the holder of an easement in gross). It may be in the form of a quitclaim deed or an agreement between the easement holder and the owner of the servient estate. 2. Clear and intentional abandonment by the easement holder, e.g., by building over the land leading to a right of way easement, so that access to that right of way was no longer possible. 3. Merger of the servient tenement and dominant tenement under one owner, since that owner will no longer need a right to use someone else's land. 4. Expiration of a specified time period for which the easement was created. 5. The purpose for which the easement was created ceases to exist, e.g., when access to a new street makes an easement by necessity unnecessary or when telephone lines are relocated off the property. 6. Prescription (adverse use) by the servient estate holder for a specific number of years. * For Example - If the servient estate holder builds over a right of way and the easement holder does nothing about it for a specified number of years, the easement could be terminated. 7. Eminent domain, with the government taking the right away upon payment of fair compensation. 8. Destruction of the servient tenement. For example, an easement given for a party wall or utility lines through a building would terminate if the building were destroyed. 9. Nonuse of a prescriptive easement for a specified number of years. *NOTE: Nonuse will result in loss of the easement only if it was originally obtained by prescription. Nonuse would not terminate a deeded easement

Easement in gross or Easement in Appurtenance

An easement that is the right of an individual or company, held for the benefit of that person or company, is called an easement in gross. An easement in gross is personal property of the easement holder. It attaches to him personally and not to his land. The easement could be noncommercial or commercial. For Example - Fred sold land bordering a park and reserved an irrevocable right to have access to the park through the land he sold. He has a noncommercial easement in gross. His easement is nonassignable and will terminate with his death, unless it is specified otherwise. The same would hold true if a person sold a property that bordered a beach and reserved the right to cross the property to access the beach. A commercial easement in gross is usually used by a utility company to install its lines under or over a privately owned property. Since almost all property has such lines, the easements in gross are the most common forms of easement. A commercial easement in gross would also be created if a person had a right to maintain a billboard on another's property. A commercial easement in gross can be sold, assigned and mortgaged. With an easement in gross there is only one parcel of real estate involved: the servient estate. When a person has a right to enter the property and remove soil or other resources, such as sand, gravel or timber, his right may be called a profit a prendre, or simply, a profit. With an easement appurtenant there are at least two parcels of land under separate ownership. This easement is a burden on one property (the servient estate) and a benefit or appurtenance to another property (the dominant estate or dominant tenement). For Example - Ward has an easement appurtenant for ingress (a way to get in) and egress (a way to get out) over Taylor's acre, to enable him to reach the public road. Taylor's land is the servient tenement. Ward's land is the dominant tenement. This right runs with the land, so it will pass with the title from Ward to the next owner and successive owners whenever the title is transferred. Because an easement appurtenant is a property right, and not a personal right of the holder, it is considered a real property interest rather than a personal property interest. Because it is appurtenant to the dominant estate, it runs with the land and will pass with the dominant estate when the title to that property is conveyed. A dominant tenement need not adjoin the servient tenement at any borders. For Example - A right of way over four parcels has been granted to a fifth parcel. That fifth parcel, the dominant estate, borders one of the servient estates, but not the other four. George's property has an easement for passage of light, air and heat over a hilly parcel that is not adjoining his property.

Encroachment

An encroachment is the unauthorized intrusion of a building or other improvement onto one's land. For example, if Walter built a wall, fence or eave that extended onto Scott's land, the wall, fence, or eave is an encroachment. Since the use of the land encroached upon is adversely affected by the existence of those improvements, the encroachment is an encumbrance, clouding the title. Most often, an encroachment is unintentional, but it is illegally entering onto another's property without authority or permission of the owner, so it is a form of trespass. The property owner could sue for ejectment to have the encroachment removed. Usually, an encroachment is discovered as a result of a survey.

encroachment

An encroachment is the unauthorized intrusion of a building or other improvement onto one's land. The encroachment is an encumbrance, clouding the title to the property encroached upon. Most often, an encroachment is unintentional, but it is illegal and a form of trespass (entry on land without the owner's permission). It is usually discovered as the result of a survey.

ENCUMBRANCE

An encumbrance is any interest or right to land held by third persons which affects the title and possibly the value of the property. Two types: 1. Some encumbrances affect the physical condition of the property or affect the use of the property. These include deed restrictions (private limitations on the use of land), easements, and encroachments. 2. Other encumbrances are financial; they involve money. Such encumbrances are called liens. A lien is a charge against property, making that property security for payment of a debt.

ENCUMBRANCES BASICS: Emcumbrances

An encumbrance is any interest or right to land held by third persons which affects the title and possibly the value of the property. Encumbrances could adversely affect title, may have no effect on value, or may result in an increase in the property value. Encumbrances affecting the physical condition of the property include deed restrictions, easements, and encroachments.

Types of liens

An encumbrance that involves money is called a lien. It is a charge against property, making the property security for payment of a debt. It is voluntary when it is created by a contract entered into by the debtor and creditor, pledging the property to secure the debt, like a mortgage or deed of trust. It is involuntary when it is imposed by operation of law, such as property tax lien, a construction (or mechanic's) lien, a special assessment for public improvements benefiting property, an income tax lien, an estate tax lien, or a judgment lien resulting from a lawsuit. It is statutory when authorized by state statute. A mechanic's lien is an example of a statutory (authorized by state statue) lien. It is equitable when imposed by a court of equity. A lien is either general or specific. A general lien (e.g., a judgment lien, debt of a decedent, income tax lien or estate tax lien) applies against a person and all of his property, except property exempted by statute. A specific (or special) lien is an encumbrance against one or more specified parcels of real estate. A mechanic's lien, a property tax lien, a special assessment, or a mortgage applying to three parcels would be a specific lien. A judgment lien is a general involuntary lien resulting from a judgment against a person. A judgment is a court order determining that one person owes another a certain amount of money. Upon filing the suit, the plaintiff may record a lis pendens (notice of suit pending), providing constructive notice of the potential judgment lien's priority over transactions occurring after the date of recording. He may also seek a writ of attachment from a court, ordering the sheriff to seize the defendant's property to make sure it will be available to satisfy the potential judgment. If the court issues a judgment against the defendant, he will not be able to convey clear title to his real property unless the lien is satisfied. Any time during the lien period, the judgment creditor may seek to have the judgment enforced by obtaining a writ of execution, ordering the sheriff to sell the judgment debtor's property. A mechanic's (or construction) lien results from statutory law that gives a person who has furnished work or materials for the improvement of real property the right to place a lien on that property if he is not paid. It must be filed within a specified time period after the work has ceased or materials have been delivered. A special assessment is a charge upon real property to pay all or part of the cost of a local improvement that will benefit the property. Such improvements include paving and creating curbs, sewers, and sidewalks; installing water mains, drains, sewers, street lighting, and other items. Property tax liens are specific involuntary liens and have priority over all other liens, including liens filed before the lien date. This means in the event of foreclosure, they are paid first. The tax is based on the assessed value, with the rate generally expressed in dollars per thousand, or mills.

Attachment

Attachment An attachment is a specific lien placed against property of a defendant in a lawsuit for money damages. The attachment arises in those situations, at the start of or during the progress of a legal action, when it may be necessary to protect the creditor against the removal of the defendant's property from reach of the court before a judgment is rendered. In the attachment process, a writ is issued by the court ordering the seizure of certain property of the defendant in the action as security for the satisfaction of any judgment the plaintiff may recover. The writ of attachment is used primarily against the property of absconding or fraudulent debtors. Because the attachment is placed before a judgment is rendered in order to make sure the defendant's property will be available if the plaintiff obtains the judgment, it is not dependent upon a judgment being rendered.

REVIEW: Encumbrances- Use

CC&R's: 1. Covenants- promises 2. Conditions- Reverters 3. Restrictions Easement: 1. Irrevocable 2. In Gross or Appurtenance 3. Negative or Affirmative License: 1. Revocable 2. Personal Permission Encroachment: 1. Intrusion onto adjacent property

Deed restriction

Condition or convenant

Deed restrictions

Deed restrictions include conditions and covenants. A condition is a restriction that provides for ownership of the property to revert to the former owner if the condition is violated. A covenant is a promise to do or not do something.

Easements (creation and termination)

Easements may be created by: -express grant (in writing). -express reservation. -eminent domain (or condemnation). -dedication. -implication. -necessity (if the property is landlocked and the owner needs access over adjacent property). -prescription (similar to adverse possession, and often referred to as adverse use). An easement may be terminated by: -written release (through a quitclaim deed) from the easement holder. -clear and intentional abandonment by the easement holder. -merger of the dominant and servient estates under one owner. -expiration of a specified time period. -the purpose for which the easement was created ceasing to exist. -destruction of the servient tenement. -prescription (adverse use by the servient estate holder). -eminent domain. -nonuse (but only if the easement had been acquired by prescription).

Involuntary Lien

Involuntary liens are imposed by operation of law, without the owner's consent. These would include a real property tax lien, a mechanic's lien for work done on property, a special assessment for public improvements benefiting property, an income tax lien, an estate tax lien, or a money judgment of a court resulting from a lawsuit. Involuntary liens may be statutory or equitable. Statutory liens are those authorized by state statute, such as mechanic's liens and property tax liens. Equitable liens are those imposed by courts of equity, often as a result of breach of contract.

Servient Estate or Servient Tenement

Land that is subject to, and therefore encumbered by, the easement is called a servient estate or servient tenement.

GENERAL LIENS

Liens may be specific or general. A general lien is an involuntary lien that applies against a person and all of the property of that person, except property exempted by statute. Judgment liens, debts of decedents, income tax liens and estate tax liens are general liens.

Lis Pendens

Lis Pendens Because there may be a considerable period of time between the filing of a lawsuit and the actual rendering of a judgment, in an action affecting title to real property, the plaintiff may record a notice of the pending suit, called a lis pendens. The lis pendens may be recorded at or after the time of filing the lawsuit. The recording gives constructive notice to any future purchaser of the property that he will be bound by all proceedings after the filing of the notice as if he were a party to the action. The result is that any future judgment resulting from the lawsuit would date back to the date of the recording of the lis pendens and would have priority over claims of persons who had constructive notice of the possible judgment.

Homestead exemption

Many states have a provision for a homestead exemption, which provides protection from foreclosure due to unsecured liens (meaning liens in which the property was not originally offered as security for the debt). The laws provide that, in the event of a foreclosure, the debtor must be able to receive a certain amount of equity from the sale. The amount varies by state. The exemption does not defeat foreclosure of secured liens such as mortgages or deeds of trust, or homeowners' or condominium association liens.

Mechanics Lien

Mechanic's Lien Another specific lien is a mechanic's lien (or materialman's lien or construction lien). This lien results from statutory law, as opposed to common law, so it is considered a statutory lien. The law gives those who have furnished work or materials for the improvement of real property the right to place a lien on that property if they are not paid. This allows contractors, subcontractors, laborers, material suppliers and equipment renters to file such liens. For Example - John Smith installs a swimming pool on Mr. Brown's land. He is not paid. He can file a mechanic's lien on that parcel of property. These liens do not arise automatically as a result of work done. They must be filed within a specified time period after the work has ceased or materials have been delivered. Once recorded, the construction lien is valid. However, unlike any other private liens, the effective date might not be the date of recording. Depending on state law, the effective date may be the day the contractor filing the lien started work, the day he finished work, or the day the entire job was finished. In some states it is the day anyone on the job started work (so that all contractors working on one job would share the same priority date). In those states, if a construction lien was recorded May 1, but work started January 2, the lien would date back to January 2 and would have priority over any private lien recorded after that date. Lenders may require an inspection of the property before giving building loans to be sure that work has not started before their lien is recorded. Once a construction lien is recorded, the contractor has a statutory number of months in which to file a suit for foreclosure, if he is not paid. If he does file for foreclosure, the court could order the property sold by the sheriff to satisfy the lien. If the lien is not foreclosed within the time allowed by state law, the property can no longer be used as security for the debt and cannot be foreclosed upon. However, the claimant can file for an unsecured judgment against the property owner himself. If property is encumbered with a construction lien and the contractor is paid, the owner should obtain and record a satisfaction of the lien in order to clear the lien from the records.

Course Objectives

Objectives Upon completion of this lesson, the student should be able to: -Define the term "encumbrance" and give examples. -Define the terms "lien," "restrictions," "encroachments," easements," and "licenses" and give examples of each. -Describe the creation and the termination of easements by necessity, prescription and condemnation. -Define the following forms of liens: voluntary, involuntary, statutory, equitable, general and specific. -Explain the effects of a lien as an encumbrance on title to real property. -Describe the priority of liens on title. -Explain attachments and judgments. -Describe the purpose of the homestead exemption. -Describe the effect of a mechanic's lien. -State the differences between general taxes and special assessments.

easement in gross

One parcel of RE involved: Servient estate

Property Taxes

Property tax liens are a major source of income for local (city and county) governments. They are specific involuntary liens and have priority over all other liens, including liens filed before the lien date. This means in the event of foreclosure they are paid first. Property taxes become a lien on property on the first day of the tax year and remain a lien until paid. If the real property is sold during the tax year and there is no agreement as to who will pay the taxes, the law provides that the buyer and seller will each be liable for a prorated amount. Property taxes are direct and proportionate taxes. They are proportionate because the dollar amount of taxes varies according to the value of the property. Because property taxes are imposed according to value, they are considered to be ad valorem taxes.

Tax ratio

Property taxes generally involve assessment of the property by the county assessor. The assessor will determine what real and personal property is taxable, assess it and get it listed on the tax rolls. In many states, the assessed value is supposed to be 100% of the true and fair value. Other states may use a tax ratio. This means that the assessed value is less than 100% of the market value of the property. In a state with a tax ratio of 80%, the assessed value is 80% of the market value. In such a state, a property worth $100,000 would have an assessed value of 80% of $100,000, or $80,000. Since it is not possible for the assessor to actually physically inspect each taxable parcel of real property each year, between physical inspections, the assessor may adjust the value of the property based on trend data and submit data relating to the sale or improvement of the property since the last assessment. The property tax rate is obtained by dividing the budget for a tax district by the total assessed value of all taxable property in the district. This rate may be expressed as an amount per thousand dollars of value or as mills. For Example - The total assessed value of property in a fire district is $80,000,000. The budget for the fire district is $500,000. To determine the tax rate, divide the budget, $500,000 by the assessed value of property, $80,000,000. The tax rate is .00625. This rate can be expressed as 6.25 per thousand dollars of value, or as 6.25 mills. One mill is one-tenth of a cent, or one-one thousandth (.001). So, a mill is the same as saying "per thousand." The property tax is calculated by adding the tax rates for all the taxing bodies that affect a particular parcel of property, and then multiplying that total by the value of the property. For Example - The total of the various rates for a property equals .01175 ($1.175 per thousand dollars of value or 1.175 mills). The property is worth $300,000 and assessed for tax purposes at $250,000. The tax would be .01175 x $250,000. The property tax is $2,937.50. Taxes generally may be paid in installments. If they are unpaid for a number of years, the county will foreclose.

income tax lien

The income tax lien is a general lien created when a government files a tax warrant in the county in which property of a delinquent income taxpayer is located. Once recorded, this lien applies to all of the taxpayer's property in any counties in which the lien is filed. The lien has priority as of the date the lien was recorded.

easement appurtenant

Two parcels of land: This easement is a burden on one property (the servient estate) and a benefit or appurtenance to another property (the dominant estate or dominant tenement).

Debts of decedent

Upon the death of a person, general liens for debts of the decedent are created when creditors file claims against the decedent's estate. Federal and state governments may also impose estate or inheritance taxes on the estate. These taxes may result in a lien against the estate in order to ensure payment before estate proceeds are distributed to heirs, devisees or legatees. Since these are general liens, the debts are paid first from any personal property of the deceased not specifically bequeathed, then paid from the rest of the personal property. If any debts remain outstanding, the real property may be sold.

LIENS

When one person owes money to another, the creditor can place a lien against the debtor's property so that if the debt is not paid, the creditor can have the property sold to get his money. The lien is a security interest of the creditor in the property of another. It is a charge against property, making that property security for payment of a debt. In most cases, the priority of a lien on real property is established by the date it is recorded. Liens include property taxes, special assessments, mortgages, deeds of trust, attachments, judgments, income tax liens, and mechanic's (or construction) liens. Some of these liens are voluntary; others are involuntary.

quiz ?:

Which of the following encumbrances would constitute a lien on real property? Mortgage - correct Easement Encroachment Restriction Incorrect. A mortgage makes the property security for a debt and is therefore a lien.

quiz ?:

Which of the following is an encumbrance, but not a lien? Mortgage Deed restriction - CORRECT Trust deed Property taxes Correct. 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.

quiz ?:

With certain exceptions a property tax lien has priority over other interests in real property according to the date they were recorded. regardless of when they were recorded. - CORRECT based on when the tax law was passed. only if the property owner agrees to assume the obligation. Correct. Usually lien priority is based on the date of recording. Exceptions are construction liens which have priority based on the date work starts, and property taxes which have top priority regardless of anything else.

Quiz ?:

biz A money judgment of the court, when recorded, always becomes a(n) involuntary lien. - CORRECT special lien. superior lien. equitable lien. Incorrect. 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 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.