Test 2: Encumbrances; Liens; Title Transfer and Recording; Lease

Which of the following describes an encumbrance?

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• • 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.

Which of the following is true of easements in general?

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• •   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.

Mr. King wants to offer 100 acres of his property for sale. Since the property is landlocked, he will have to put in a driveway to the road that will run across his remaining property. What kind of easement will he have to grant?

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• •   An easement in gross.

• • A commercial easement.

• • A personal easement.

• • An easement appurtenant.

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)

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• • easement by prescription.

• • personal easement.

• • easement by necessity.

• • easement in gross.

An encroachment is

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• • an easement that has not been recorded on the title of the burdened property.

• •   an unauthorized physical intrusion of one property into another.

• • a right granted by a property owner to the owner of an adjoining property to build a structure that protrudes across the property boundary.

• • a structure that does not comply with a zoning ordinance.

A court might grant an easement by prescription if

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• •   a town needs to dig a trench across an owner's property to install a sewer line to a neighboring property, and the owner refuses permission.

• • a property owner sells the front half of a lot and wants to continue using the driveway to access the rear of the lot.

• • a trespasser has been using an owner's property for a certain period with the owner's knowledge but without permission.

• • a property owner wants to prevent the owner of an adjoining property from building a an improvement that blocks her view.

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

•   the form of ownership in which a property may be held.

•   how long a property must be owned before it can be legally transferred.

•   what groups of people are legally excluded from future ownership of a property.

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

• • the form of ownership in which a property may be held.

• • how long a property must be owned before it can be legally transferred.

• •   what groups of people are legally excluded from future ownership of a property.

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

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

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• • evidence of debt incurred by a property owner.

• • a promissory note granted by a property owner as security for a debt.

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

• • the document required to clear clouded title.

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

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• • A possessory interest.

• • A tenancy-by-mortgagee interest.

• •   A legal interest in a pro rata share of the property.

• • An equitable interest.

How is a lien terminated?

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

• • Transfer of the property that has the lien.

• • Recording of another lien that is superior.

• • Death of the lienor or lienee.