Property Ownership
Which of the following is an encumbrance that does NOT affect the physical use of property?
AAn easement
BA monetary lien✓ Correct
CA restrictive covenant
DAn encroachment
Explanation
A monetary lien (such as a mortgage or judgment lien) is a financial encumbrance that affects the owner's ability to convey clear title but does not physically restrict the use of the property.
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Key Terms to Know
Encumbrance
Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
EasementA non-possessory right to use another person's land for a specific purpose.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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