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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Key Terms to Know
Encumbrance
Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
State-Specific Concepts
Mechanic's Lien
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