National Real Estate Practice Exam

Which of the following describes an encumbrance in real estate?

1. A payment made toward a mortgage

2. A right that attaches to the property

3. A legal dispute over property lines

4. A type of ownership that is limited

The correct answer is: A right that attaches to the property

An encumbrance in real estate is best described as a right that attaches to the property. This concept refers to any claim, lien, charge, or liability that is attached to real property. Encumbrances can affect the property's value and the owner's ability to transfer title. They can include easements, which allow others to access portions of the property, or liens, which are legal claims against the property due to unpaid debts. These rights can encumber the property in that they impose restrictions or obligations on the owner, influencing how the property can be used or sold. Understanding this definition is important, as it highlights the different ways in which rights can interact with property ownership, impacting transactions and property value. The other options, while related to real estate, do not accurately capture the definition of an encumbrance. A payment made toward a mortgage refers to the financial obligation rather than a claim on the property itself. A legal dispute over property lines pertains to conflict rather than a right associated with the property, and a type of ownership that is limited relates to ownership structures rather than encumbering rights attached to the property.