ENCUMBRANCES
● non-possessory interests limiting the legal owner's rights
EASEMENTS
● a right to use portions of another's property
Easement appurtenant
● dominant tenement's right to use or restrict adjacent servient tenement; attaches to the real estate
● easement by necessity: granted by necessity, e.g. to landlocked owners
● party wall: negative easement in a shared structure
Easement in gross
● a right to use property that does not attach to the real estate
● personal: not revocable or transferable; ends upon death of easement holder
● commercial: granted to businesses; transferable
Easement creation
● voluntary grant, court decree by necessity or prescription, eminent domain
● by prescription: obtainable through continuous, open, adverse use over a period
Easement termination
● release; merger; abandonment; condemnation; change of purpose; destruction; non-use
ENCROACHMENTS
● intrusions of real estate into adjoining property; can become easements
LICENSES
● personal rights to use a property; do not attach; nontransferable; revocable
DEED RESTRICTIONS
● conditions and covenants imposed on a property by deed or subdivision plat
LIENS
● claims attaching to real and personal property as security for debt
Lien types
● voluntary and involuntary; general and specific; superior and junior
Lien priority
● rank ordering of claims established by lien classification and date of recording; determines who gets paid first if lienee defaults
Superior liens
● rank over junior liens; not ranked by recording date; real estate tax and assessment liens and inheritance taxes
Junior liens
● rank by recording date: judgment; mortgage, vendor's, utility, mechanic's, other tax liens; mechanic's lien priority "dates back" to when work or sale transpired
FORECLOSURE
● enforcement of liens through liquidation or transfer of encumbered property
Mortgage lien foreclosure
● liquidation or transfer of collateral property by judicial, non-judicial, or strict foreclosure
Judicial foreclosure
● lawsuit and court-ordered public sale; deficiency judgments, redemption rights
Non-judicial foreclosure
● "power of sale" granted to lender; no suit; no deficiency judgment; no redemption period after sale
Strict foreclosure
● court orders legal transfer of title directly to lender without public sale
Deed in lieu of foreclosure
● defaulted borrower deeds property to lender to avoid foreclosure
#Encumbrances And #Liens #realestatelicensing
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