Property Ownership

What is an encumbrance on real property?

AA government tax lien that prevents any transfer
BAny claim, lien, charge, or liability attached to and binding upon real property✓ Correct
CThe physical boundary of a parcel
DA special assessment for public improvements

Explanation

An encumbrance is any right or interest held by a party other than the owner that affects or limits the use, transfer, or value of the property—such as mortgages, liens, easements, or deed restrictions.

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