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Finance 7 Part 1: Encumbrances & Liens

Terms in this set (22)

Encumbrance
a claim on a property belonging to someone other than the owner
Easement
the right to enter the property of another without owning it
Affirmative Easement
an easement that gives people the right to use someone else's personal property for a specific purpose
Negative Easement
an easement that prohibits a property owner from performing an otherwise legal activity on their own property
Servient Estate
the party that has the burden of granting the other party access in an easement
Dominate Estate
the party that is gaining access to the servient estate's land in an easement
Easement Appurtenant
an easement that applies to the land regardless of the owner
Easement in Gross
an easement that applies to the person or entity, not the specific land
Floating Easement
an easement that does not have a clearly marked, fixed location to which access is granted
Express Easement
an easement created by a written agreement between two or more parties
Implied Easement
an easement created as logical features of the land
Prescriptive Easement
when a dominant party has been using the servient party's land continually, out in the open, for a statutory amount of time
Encroachment
when a party that is not the property owner interferes with the property owner's land
Restrictive Covenant
a type of encumbrance that restricts how a buyer could use the property they are buying
Security Interest
a legal claim of collateral in exchange for a loan
Lien
a right to possession of a property by someone other than the owner until a legal duty is satisfied by the owner
Voluntary Lien
liens that are entered into with the consent of all parties
Statutory Lien
a lien that is obtained through a government law — such as a tax lien, mechanic's lien, vendor's lien, etc.
Judgement Lien
a nonconsensual lien that is created through the power of a court
Specific Lien
a lien specific to a certain property
General Lien
a lien that attaches to all of a person's property
Mortgage Lien
a lien on a home that guarantees repayment to the lender if the borrower does not make the required payments
Sets found in the same folder