Under Alberta's Land Titles Act, what is an encumbrance?
Correct Answer
A) A charge, lien, or interest registered against the title
An encumbrance is any charge, lien, mortgage, or other interest registered against a certificate of title under the Land Titles Act. Encumbrances diminish the owner's bundle of rights and remain on the title until formally discharged.
Why This Is the Correct Answer
Under the Land Titles Act, an encumbrance is a charge, lien, mortgage, easement, or other interest registered against the certificate of title. Encumbrances diminish or limit the owner's rights in the property and remain on the title until formally discharged through the proper legal process.
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