Prepare for the California Real Estate Exam. Study with flashcards and questions featuring hints and explanations. Get exam-ready!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.


Which of the following is an encumbrance?

  1. Freehold estate

  2. Homestead

  3. Lease agreement

  4. Recorded subdivision map

The correct answer is: Freehold estate

An encumbrance refers to a claim, lien, charge, or liability attached to and binding upon real property. Among the choices provided, a lease agreement fits this definition because it grants the lessee a right to use and occupy the property for a specified period while creating a claim against the property that remains in effect regardless of the ownership. This means the property owner must adhere to the terms of the lease, making it a restriction on the owner's rights. In contrast, a freehold estate represents ownership interest in real property that is typically not encumbered and does not restrict the owner's rights. A homestead is a legal designation that certain properties may receive, which can offer some protection against creditors but does not itself constitute a claim against the property. A recorded subdivision map details the layout of subdivided land but doesn’t impose any claims or restrictions in the way an encumbrance does.