Question

Which of the following would be the best and most complete definition of the term "encumbrance":

A) The degree, quantity, nature, and extent of interest which a person has in real property
B) The use of property by a debtor to offer a creditor security for a debt
C) Any action taken relative to property, other than acquiring or transferring title
D) Anything which affects or limits the fee simple title to property

Answer 1

The best definition of encumbrance is anything which affects or limits the fee simple title to property. An encumbrance is a claim, lien, or right that obstructs or restricts the owner's ability to fully exercise their ownership rights.

Step-by-step explanation:

The best and most complete definition of the term 'encumbrance' would be option D) Anything which affects or limits the fee simple title to property. An encumbrance is any claim, lien, or right that obstructs or limits the title holder's ownership rights to a property. It can include restrictions, debts, or other actions that impact the free and clear ownership of the property.