Property Ownership
What is the difference between a lien and an encumbrance in Delaware?
AThere is no difference; both terms are interchangeable
BA lien is a financial claim against property; an encumbrance is any claim, lien, charge, or restriction on a property's use or transferability✓ Correct
CA lien is voluntary; an encumbrance is always involuntary
DAn encumbrance applies only to land; a lien applies to improvements
Explanation
An encumbrance is a broad term for any claim, lien, charge, or limitation (including restrictions and easements) on a property's title or use. A lien is a specific type of encumbrance — a financial claim against the property securing a debt.
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