Lesson 5 Quiz – Encumbrances & Liens

Which of the following scenarios describes a license?

The utility company is granted an easement in gross

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A homeowner drills into her yard in search of mineral rights

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The owner of an easement allows a landlocked neighbor to access the public road

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A new homeowner grants permission for an individual to fish in his pond

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Which of the following scenarios is an example of an encroachment?

The branch of an apple tree extends into the neighbor’s yard

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A homeowner plants trees in the center of her yard

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The owners of a shared easement use it as a place to park their car

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An owner grants permission for an individual to build a fence

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A legal owner must allow the use of a specific area to another individual such as surface rights or airspace. This is known as

an easement

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the termination of rights

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the deed restrictions

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a restrictive covenant

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Which party has the choice to use the adjoining property at their convenience?

Servient tenement

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Mortgagor

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Grantor

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Dominant tenement

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Which of the following is an example of an easement in gross?

An individual using a driveway to reach a fishing pond

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An individual using a trail to reach the public road

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A representative from a gas company accessing a property to check the gas meter

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A family member walking onto the owner’s lawn to set chairs for a party

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There are two adjacent properties connected by an easement. Property Owner A must give Property Owner B access to the pathway leading to the pond. In this case, what is Property Owner A known as in relation to Property Owner B?

Servient tenement

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Dominant tenement

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Grantor

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Mortgagee

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A property owner cannot be landlocked to a public road. In these instances, it is necessary for the owner to receive an

easement by gross

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easement by prescription

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easement by necessity

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easement by appurtenant

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What is an example of a lien?

An outstanding property tax bill

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A license issued to fish in the lake

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An easement by prescription in the county

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A deed restriction that limits land use

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Which of the following is an example of a voluntary lien?

An unpaid property tax lien

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A conventional mortgage loan

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An easement to public roads

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Transferring title to a family member

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Which of the following liens characterizes a general lien?

An outstanding inheritance tax lien

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A specific tax bill attached to a condo unit

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An outstanding property bill on a residential property

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A mechanic’s lien attached to a particular townhome

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Which factor generally determines lien priority among junior liens?

The cost of the lien

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The date when the lien is recorded

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Whether payment will be made by cash or credit

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The smallest lien amount due

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Who can create a mechanics’ lien?

Office of Recorder of Deeds

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County assessor’s office

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Local municipality

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The neighborhood electrician

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An involuntary lien can be placed on a property under which of the following circumstances?

Purchasing a car with a personal loan

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Refinancing on a commercial property

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Buying a property without a mortgage

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Having an equitable lien against a homeowner filed by a court

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A deed restriction typically focuses on

the permitted uses allowed by the property’s zoning

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tax assessment and special assessment limitations

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how the land will be used

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homeowner association policies

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How does a judicial foreclosure differ from a strict foreclosure?

The mortgagee must file a foreclosure suit with the court in a judicial foreclosure

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The mortgagee issues the lien request in a strict foreclosure state

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The mortgagor files the lien with the court system in a judicial foreclosure state

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The mortgagee requests the legal title from the mortgagor

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Which of the following serves as public notice that a mortgaged property may be in the process of litigation?

Constructive notice

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Constructive eviction

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Title insurance

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Lis pendens

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What occurs when a deficiency judgment is issued in a foreclosure sale?

All debts are forgiven

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The deficiency judgment allows for a short sale to occur

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The mortgagee requests that a judgment lien be placed on the mortgagor’s assets

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This restricts the usage of an easement of necessity

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In a non-judicial foreclosure, the “power of sale” allows

the borrower to retain the house

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the lender to file a court judgment

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the mortgage to be assumed by the lender

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the mortgagee to force the sale of the mortgaged property without a court decree

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What is an example of an encumbrance?

Title insurance

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Life estate

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Easement

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Tax stamps

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A borrower repays the lender past-due mortgage payments and all associated penalties to terminate the foreclosure process. The borrower has exercised the right of

lis pendens

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re-instatement

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possession

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writ of execution

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How is an involuntary easement created?

By applying for a mortgage

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By transferring the bundle of rights

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By condemning a property through eminent domain

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By securing title insurance

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