Real Estate Studies- Liens and Encumbrances

Liens

Encumbrances

A Lien is a legal claim against property that can be used to repay a debt. Liens can be attached to real property such as homes, or personal property such as a car. Since liens are placed on a property, lien holders can force the sale in order to satisfy the debt. In other words, if you owe $10,000 to a lien holder and you sell your house, the lien holder may take $10,000 out of your proceeds.

Encumbrances

An encumbrance is a limit on how an owner can use real estate. This claim is common on almost every property in the United States and can restrict what an owner does with their property. Some common encumbrance claims are known as leases, liens, easements, and mortgages. Mortgages can be considered as an encumbrance because if a homeowner does not keep up with their mortgage payments, the property owner has the right to foreclose the property.

Types of Encumbrances

Encroachment

Encroachment occurs when a party that is not the owner intrudes or interferes with another property. A common example may be building a fence just over your property line which results in interference on someone else's property. Encroachment creates an encumbrance for both parties until the issue is resolved and cleared.

Easement

An easement is one party; 's right to use or improve parts of another party's property. Easements can also prevent owners from using or improving others' property in certain ways. When purchasing a property, it is important that the owner knows of any easements on that property.

Real Estate Studies- Liens and Encumbrances

Liens

Encumbrances

Encumbrances

Encumbrances

Encumbrances

Encumbrances

Types of Encumbrances

Encroachment

Easement

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