Property Ownership

In North Dakota, a property 'encumbered' by a mortgage, easement, and a pending judgment lien has:

AClear marketable title
BMultiple claims or interests that affect the owner's full rights and must be disclosed and potentially cleared before a sale✓ Correct
CNo value because of the encumbrances
DTitle that automatically clears after 7 years

Explanation

Encumbrances are claims, liens, or interests held by parties other than the property owner that affect the property. Multiple encumbrances cloud title and must be disclosed. At closing, liens are typically paid off from sale proceeds, but pending litigation and easements may transfer with the property.

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