If a property is encumbered by a mortgage and an easement, which term best describes both as claims against the title?

If a property is encumbered by a mortgage and an easement, which term best describes both as claims against the title?

• A. Liens.
• B. Easements.
• C. Covenants.
• D. Encumbrances.

Answer: (D)

Encumbrances are claims or limitations that burden a property's title. A mortgage creates a lien on the property to secure the loan, and an easement gives another party a right to use a portion of the property. Both stay with the property and can affect transfer or marketability until they’re released or satisfied. Because encumbrances is the umbrella term that covers both liens and easements, it best describes them collectively. Other terms describe only one aspect—such as a lien or an easement—or describe different kinds of land interests, like covenants, which are promises that affect use but don’t encompass both items.

Encumbrances are claims or limitations that burden a property's title. A mortgage creates a lien on the property to secure the loan, and an easement gives another party a right to use a portion of the property. Both stay with the property and can affect transfer or marketability until they’re released or satisfied. Because encumbrances is the umbrella term that covers both liens and easements, it best describes them collectively. Other terms describe only one aspect—such as a lien or an easement—or describe different kinds of land interests, like covenants, which are promises that affect use but don’t encompass both items.