Property Ownership
What is the difference between a 'lien' and an 'encumbrance' in Rhode Island?
AThey are the same thing
BAn encumbrance is any claim or restriction on property (including liens, easements, covenants); a lien is a specific type of encumbrance—a financial claim against the property✓ Correct
CA lien is a physical restriction; an encumbrance is a financial claim
DLiens apply only to commercial properties
Explanation
An encumbrance is any claim, right, or restriction on property, which may or may not involve a financial obligation. A lien is a specific type of encumbrance that represents a creditor's financial claim against the property.
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