Encumbrances on Real Property (S2U5)

Question 1

Encumbrance

Answer 1

any claim or lien held by another person or entity against the property that limits the owner’s use or rights, or decreases the property value.

Question 2

Lien

Answer 2

a creditor’s legal right to have their debt paid out of the property of a defaulting debtor, usually by a court sale.

Question 3

Easement

Answer 3

the authorized use of another’s property for a specific purpose.

Question 4

Non-Possessory Rights

Answer 4

allow usage of a property without actual occupation of the property.

Question 5

Encroachments

Answer 5

an affixed intrusion onto another person’s property that is not authorized.

Question 6

Deed Restrictions

Answer 6

limit the use or appearance of a property

Question 7

CC&R

Answer 7

aka Covenants, Conditions, and Restrictions: The rules of an association, such as a HOA or Cooperative.

Question 8

Specific Lien

Answer 8

attaches to a single property

Question 9

General Lien

Answer 9

affects all of a debtor’s property, both real & personal

Question 10

Voluntary Lien

Answer 10

when ppl agree to have the security placed on themselves or their property

Question 11

Involuntary Lien

Answer 11

when creditors put a lien on both real and personal property without the owner’s consent - this requires legal action

Question 12

Mortgage Lien

Answer 12

specific, voluntary lien when financing a house

Question 13

Property Tax Lien

Answer 13

property taxes - failure to pay creates lien

Question 14

Special Assessment Lien

Answer 14

When gov’t makes an improvement to the property (sidewalks, streetlights, etc) that benefits the public, the gov’t can place a levy against the real property to help fund the improvement.

Question 15

HOA Lien

Answer 15

When properties with HOA’s don’t pay their HOA fees. Some states (20) give HOA liens Super Lien Status.

Question 16

Super Lien

Answer 16

lien’s that take priority over other liens.

Question 17

Mechanic’s Lien

Answer 17

If professional or skilled workers aren’t paid for their work, a lien is put against the house.

Question 18

Vendee’s & Vendor’s Lien

Answer 18

When a seller defaults in performing a contract, the buyer has a vendee’s lien against the property for sale to receive an earnest money reimbursement. A vendor’s lien allows a seller to repossess a sold property until the buyer pays in full, agreed-upon purchase price.

Question 19

Attachment

Answer 19

In lawsuits for monetary damages, the courts can place encumbrances on property owned by the defendants. The court holds the property in custody as security to satisfy any judgement the court renders in the plaintiff’s favor.
A Writ of Attachment is recorded in the public records and creates a lien against the property

Question 20

Judgement Lien

Answer 20

When people win lawsuits over property owners, judgment liens ensure they get the money won in the lawsuit.

Question 21

Federal & State Taxes Lien

Answer 21

If ppl don’t pay their taxes, a lien is placed on the house.

Question 22

Decedent’s Debts

Answer 22

When a person dies and has debt
First personal property not in the will is sold to pay the debt.
Then PP in the will is sold to pay the debt
Lastly, real property is sold to pay the debt

Question 23

Lis Pendens

Answer 23

Not actually a lien, instead it serves as constructive notice that someone other than an owner is claiming a potential ownership interest in real property.
This is often used in foreclosure.

Question 24

Easement

Answer 24

a non-possessory right acquired by one party to use the land of another party for a special purpose.

Question 25

Easement Appurtenant

Answer 25

Easements attached to a specific parcel of land that transfer within the land; grants the right to use adjoining property.

Question 26

Easement in Gross

Answer 26

Easements granted to a specific individual or business entity rather than attached to the property itself

Question 27

Dominant Estate

Answer 27

The recipient or beneficiary of an easement right

Question 28

Servient Estate

Answer 28

the giver of the easement right.

Question 29

Express Easements

Answer 29

written documents that typically outline the easement’s terms, location, and purpose.

Question 30

Easement by Perscription

Answer 30

created through the continued, uninterrupted, obvious, and adverse—meaning without permission—use of another’s property for many years. They also must be exclusive to the party using the property. If permission is granted, or the trespasser in any other way acknowledges the trespass, easement by prescription is not formed.

Question 31

Visible Easement

Answer 31

A property is subdivided into at least two separate properties, creating dominant and servient estates from what was once a single property. The easement must be situated in a way that it creates an obvious benefit to the dominant estate, and a burden to the servient estate. The easement must have been used long enough before subdivision to show that it was intended to be permanent. The easement must be reasonably beneficial to the dominant estate.

Question 32

Easement by Necessity

Answer 32

Created only for the purpose of entering and exiting property (ingress & egress)

Question 33

Ingress

Answer 33

Enter a property

Question 34

Egress

Answer 34

Exit a property

Question 35

Right of Way

Answer 35

differ from other easement types because they don’t allow usage of the land but instead provide a pass-through. Rights-of-way are typically granted to allow access from point A to point B, the distance of which could be as short as a shared driveway to as long as a power company’s utility lines

Question 36

Express Agreement

Answer 36

Both parties agree, in writing, to terminate the easement.

Question 37

Abandonment

Answer 37

The dominant estate owner takes action that shows a clear intent to stop using the easement, such as building a road so there’s no longer a need for an easement across a neighbor’s property.

Question 38

Merger

Answer 38

If one of the parties buys or otherwise attains the other’s property, the dominant and servient estates are merged and there’s no longer a need for an easement.

Question 39

Necessity Discontinues

Answer 39

If the easement is no longer needed, the easement is terminated. This is similar to abandonment, except that abandonment specifically requires action by the dominant estate’s owner.

Question 40

True or False: Tenants usually have the right to remain in a property even if it’s sold during their lease term, unless the lease states otherwise.

Answer 40

True

Question 41

True or False:If the lease agreement includes the right to review the lease, the new owner must honor that right and allow tenants to renew at the end of the term

Answer 41

True

Question 42

True or False: Any pre-paid rent would not be transferred to the new owner, and the tenant would owe the new owner any additional monies not specified in the lease agreement.

Answer 42

False: Any pre-paid rent would be transferred to the new owner, usually at closing and the tenant would not owe the new owner any additional monies not specified in the lease agreement.