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Which statement best defines an encumbrance in real estate?

Correct Answer

A) A claim, charge, or restriction that burdens title or limits land use

An encumbrance is any claim, charge, liability, or restriction that burdens real property. It may affect title, marketability, or use even though it does not necessarily prevent ownership.

Answer Options
A
A claim, charge, or restriction that burdens title or limits land use
B
A temporary transfer of possession that never affects title or use rights
C
A method of passing ownership only through intestate succession
D
A clause that automatically enlarges the owner's fee estate

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Background Knowledge for Property Ownership

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Related Topics & Key Terms

Key Terms:

encumbrancedefinitiontitle_burdenland_useproperty_rights

Related Concepts

In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.

Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.

Community property is a system where property acquired during a marriage is owned equally by both spouses.

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