Property Ownership

Which of the following is an example of an encumbrance on a property?

AA recent appraisal report
BA mortgage lien✓ Correct
CA certificate of occupancy
DA property tax receipt

Explanation

An encumbrance is any claim, lien, charge, or liability against a property that may diminish its value or restrict its use. A mortgage lien is a financial encumbrance. Easements, deed restrictions, and judgments are also encumbrances.

Related Tennessee Property Ownership Questions

Practice More Tennessee Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Tennessee Quiz →