NC Test Prep Unit II

Front

Which of the following describes an encumbrance? A third party’s right to encroach upon a property without the permission of the property owner. A third party’s right to claim the sale proceeds of a property that has been mortgaged as collateral for a loan. A third party’s interest in a real property that limits the interests of the freehold property owner. Another's right to acquire a freehold interest in a property against the property owner's wishes.

Back

A third party’s interest in a real property that limits the interests of the freehold property owner.

Front

Which of the following is true of easements in general?
Options:
They involve the property that contains the easement and a non-owning party.
They apply to a whole property, not to any specific portion of the property.
They only involve the legal owner of the property.
They may require a specific use, but cannot prohibit one.

Back

They involve the property that contains the easement and a non-owning party.

Front

What kind of easement will Mr. King have to grant for his landlocked property?

Back

An easement appurtenant.

Front

If property Alpha has a court-ordered easement across property Beta in order for Alpha to have access to a public road, the easement is a(n)

Back

easement by necessity.

Front

An encroachment is

Back

an unauthorized physical intrusion of one property into another.

Front

The purpose of a deed restriction is to enable an owner to specify:

Back

how a property may be used and what improvements may be built on it.

Front

Melinda purchases a house and finances it. The lender in turn places a lien on Melinda’s title. The lien in this mortgage transaction is:

Back

the creditor's claim against the property as collateral security for the loan.

Front

In a lien-theory state, what kind of interest does a mortgage lender have in the liened property?

Back

An equitable interest.

Front

How is a lien terminated?

Back

Payment of the debt that is the subject of the lien and recording of the satisfaction.

Front

A real estate tax lien, a federal income tax lien, a judgment lien, and a mortgage lien are recorded against a property. Which lien will be paid first when the property is sold?

Back

Real estate tax lien.