Property OwnershipIntermediateDelaware Exam

An encroachment occurs when:

ASimply a situation where a government body alone formally restricts a property's permitted use

BA structure or improvement extends over the property boundary onto adjacent landCorrect

CA lien is placed on the property

DA covenant restricts land use

Why A structure or improvement extends over the property boundary onto adjacent land Is Correct

Answer B: A structure or improvement extends over the property boundary onto adjacent land

An encroachment is a physical intrusion of a structure or improvement across a property boundary onto a neighbor's land, which can affect title marketability.

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

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.

People Also Study

Key Terms to Know

Encumbrance

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

Abstract of Title

A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Deed

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

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