Encumbrance Flashcards Preview

Real Estate Sales Exam > Encumbrance > Flashcards

Flashcards in Encumbrance Deck (20):
1

Define encumbrance.

An encumbrance is generally defined as a claim or lien on a parcel of real property.

2

Specific types of encumbrances include.

Encroachment
Easement
- Easement Appurtenant
- Easement in Gross
Liens
- Mechanic's lien
- Material Man's lien
Foreclosure
Judgment
- Writ of attachment
- Writ of execution
Tax liens
- property tax lien
- federal tax lien
- state tax lien

3

Encroachment

A situation in which a structure/fixture is built on another person's property and 'encroaches' on their area.

4

Easement

A certain right to use the real property of another owner, such as paying rent for a building on their land or being allowed access to privately owned lake.

5

Easements are generally considered a property right. T/F?

True

6

Easement Appurtenant

Typically benefits the land and is transferred automatically if the property is transferred to another party -- "runs with the land."

7

Easement in Gross

Typically benefits the individual or legal party and can be used for personal or commercial use. Generally not inherited/assignable, it can be transferred for business purposes.

8

Lien

Lien is a form of security granted over an item of property to secure the payment of a debt or obligation.

9

Mechanic's lien

A lien that exists for real and personal property and initiated by those who have supplied labor or materials to improve the property (carpenters, landscapers).

10

Material Man's lien

Similar to mechanic's lien, but applies more to the actual person or company who supplies the actual materials being used.

11

A legal process in which the lender tries to recover the balance of a loan after repayments have stopped, by selling the asset used as collateral for the loan.

Foreclosure

12

A type of lien that is meant to secure payment or property that was awarded in some kind of judgment or settlement.

Judgment

13

Writ of attachment

A court order to seize an asset

14

Writ of execution

Written in order to force a judgment made against an asset, usually to collect an asset that has been ordered to be turned over.

15

A type of lien obtained on the property, including all land rights, imposed by the government's taxing authority -- typically used for payment of federal taxes.

Tax liens

16

A lien to seize assets on a property or set of properties.

Property tax lien

17

A lien to seize federal taxes that have not been paid.

Federal tax lien

18

A lien to seize state taxes that have not yet been paid.

State tax lien

19

A contractor is hired for work on the property, but when the owner doesn't pay for the job, the contractor can put a lien on the property to secure his/her payment. Voluntary or Involuntary lien?

Involuntary lien

20

A homeowner that entered a lien to take out a second mortgage on his home. Voluntary or Involuntary lien?

Voluntary lien