California Real Estate Practice Exam

Which of the following is NOT a lien?

1. Encumbrance

2. Homestead

3. Zoning

4. All of the above

The correct answer is: Encumbrance

A lien is a legal claim or right against a property, typically used as collateral to secure a debt. In the context of real estate, it represents one party's interest in another party's property until the debt obligations are satisfied. An encumbrance, on the other hand, is a broader term that refers to any claim against a property that may restrict its use or transfer. This can include liens, easements, and other interests that affect the property's title. Therefore, encumbrance is not categorized as a lien itself. A homestead refers to a legal exemption for a person's primary residence, protecting it from creditors in the context of certain debts. It offers a degree of protection but does not constitute a lien against the property. Zoning involves regulations that govern how land can be used and does not create a lien on a property. Instead, zoning laws dictate the property's allowable uses and are enforced by local governments. Considering these definitions, encumbrance, homestead, and zoning represent different concepts, with only liens being a specific type of encumbrance. Thus, identifying encumbrance as the answer incorrectly categorizes it as a lien.