Real Estate Encumbrances

Real Estate Encumbrances: Liens, Deed Restrictions, Easements, and EncroachmentsAn encumbrance is a claim or liability against real estate, held by someone other than the fee owner of the property that affects the title to the property, and therefore its value. It does not confer any possessory interest, and therefore is not an estate, and does not necessarily prevent the transfer of title. Encumbrances can include liens against the property, deed restrictions, easements, and encroachments.EasementsAn easement is the right of someone other than a fee owner to use a particular parcel of land for a particular purpose—most often it is the right to cross the property.The Creation of EasementsEasements are created by either express agreement or by implication. In many cases, an owner creates an easement for himself when selling a parcel of his land or gives an easement to a buyer of the property to pass over his land because of convenience or necessity.The Termination of EasementsAn easement can be terminated in numerous ways, especially when the reason for the easement no longer exists, or it makes no sense, such as when both dominant and servient tenements are bought by the same owner (termination by merger), or when the use of the easement changes significantly, for instance, by greatly increased traffic, or the owner of the dominant tenement releases the easement.LicensesA license, unlike an easement, is having the permission of the owner—the licensor—to enter his land for a specific purpose.EncroachmentsAn encroachment is an extension of some physical structure, such as a building, driveway, fence, or tree over the property lines from an adjoining property. Encroachments can affect the marketing of the title, and should be noted in a listing agreement or sales contract.Encroachments can best be determined by a spot survey, which is a survey showing the locations, sizes, and shapes of the buildings on a lot.