California Real Estate Practice Exam

Which of the following is an example of an encumbrance?

1. A water well

2. A house foundation

3. A leased easement

4. A swimming pool

The correct answer is: A water well

An encumbrance is a claim, lien, charge, or liability attached to a property that may affect its transferability or value. A leased easement fits this definition because it represents a right for a specific use of another's property, which can limit the property owner's rights. In this case, the easement allows a party access or use of a portion of the property for a defined purpose, creating a legal obligation that affects how the property can be used or developed. On the other hand, a water well, a house foundation, and a swimming pool are not considered encumbrances. They are physical structures or installations that contribute to the property's value but do not impose restrictions or claims against title. Therefore, the correct answer is the leased easement, as it represents an encumbrance by affecting the ways in which the property can be used and enjoyed.