First Tuesday Real Estate Exam Practice 2026 – Complete Preparation Guide

An encumbrance on title is any claim or restriction that burdens the owner's rights to use or transfer the property. A right of way creates an easement, meaning someone else has a legal right to cross or use a portion of the property, which clouds the title since it limits the owner's full control. A mortgage lien is a recorded claim by a lender that secures a loan; until the loan is satisfied, this lien sits on the property and affects transferability. Restrictive covenants are private restrictions recorded against the property that limit how the land can be used or developed and bind future owners, also loading the title with a constraint. Since each of these represents a legitimate burden on the property’s title, the correct choice is that all of the above are encumbrances.