Escrow & Title

An encumbrance on Iowa real property is best described as:

AA boundary dispute with a neighbor
BAny claim, lien, charge, or liability attached to and binding on real property that may diminish its value or restrict its transfer✓ Correct
CA zoning restriction imposed by state law
DA notice of pending sale posted on the property

Explanation

An encumbrance is any right or interest in land held by someone other than the fee owner that affects the title or use of the property. Examples include mortgages, easements, deed restrictions, mechanic's liens, and judgment liens.

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