Escrow & Title
An 'encumbrance' on a South Carolina property title is best defined as:
AAny improvement made to the property
BAny claim, lien, or restriction that affects title or limits the owner's use✓ Correct
CThe property's legal description
DThe list of prior owners in the chain of title
Explanation
An encumbrance is any claim, lien, charge, or liability attached to a property that affects its title or limits the owner's use, such as mortgages, easements, deed restrictions, or tax 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).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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