Which term best describes encumbrances, liens, easements, and encroachments?

• A. Encumbrances
• B. Private Restrictions
• C. Private Controls
• D. Arm's Length Transaction

Answer: (C)

Encumbrances describe claims or burdens on a property that affect title or use. Liens, easements, and encroachments are all examples of encumbrances, because they limit what you can do with the property or affect its transfer without transferring ownership itself. An encumbrance can cloud the title or impose restrictions, but it doesn’t convey ownership.

Private restrictions refer specifically to deed restrictions or covenants that limit use, which is only a subset of encumbrances and doesn’t capture liens or encroachments. Private controls isn’t a standard term used to describe these concepts, and an arm’s length transaction is about the relationship between buyer and seller, not about burdens on the property.