Property OwnershipQuestion 8 of 120
Which statement best describes the relationship between encumbrances and liens?
a.All encumbrances are liens
b.Liens and encumbrances are unrelated
c.An encumbrance can never affect title
d.Every lien is an encumbrance, but not every encumbrance is a lien
Explanation
An encumbrance is any claim, charge, or restriction that affects title, including liens, easements, and deed restrictions. A lien is a specific type of encumbrance securing payment of a debt. Thus all liens are encumbrances, but non-monetary encumbrances like easements are not liens.
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