Property OwnershipIntermediateArizona Exam

An encumbrance on real property in Arizona is best described as:

AAny physical improvement attached to the property, including structures, landscaping, and utility connections, affecting the property's assessed value and tax obligation

BA claim, lien, charge, or liability attached to the property that affects its title or useCorrect

CAny government regulation that restricts the owner's use of the property, including zoning ordinances, building codes, and environmental protection requirements

DA deed restriction that has expired by its terms but was not released of record, creating a cloud on title that must be cleared before the property can be sold

Why A claim, lien, charge, or liability attached to the property that affects its title or use Is Correct

Answer B: A claim, lien, charge, or liability attached to the property that affects its title or use

An encumbrance is any claim, lien, charge, or liability attached to real property that affects its title, value, or use. Encumbrances include mortgages, easements, CC&Rs, and liens.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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