Chapter 12 Encumbrances, Government Restrictions, and Appurtenances 2010©Cengage Learning. All...

Chapter 12Encumbrances,

GovernmentRestrictions, andAppurtenances

2010©Cengage Learning. All Rights Reserved.

http://www.cengage.com/realestate/fraser

IN THIS CHAPTER

• An encumbrance is anything that lessens the bundle of rights in real property.

• Most encumbrances are interests in the property that create debt or give use control.

• Easements, liens, restrictive covenants, and encroachments.



EASEMENTS

• a nonpossessory interest in land owned by another.

• Easements in Gross• Easements Appurtenant



Creation of Easements Appurtenant

1. deed (grant or reservation)2. necessity and intent3. prescription4. implication5. condemnation



LIENS• A claim or charge against the property of

another.• Priority of Liens• Real Property Tax Liens• Ad Valorem Tax• Special Assessments• Mortgage Liens• Mechanic’s & Materialman’s Liens



Michigan Construction Lien Act

• To protect and enforce, by lien, the rights of persons performing labor or providing material or equipment for the improvement of real estate.

• Recovery Fund• Lis Pendens



General Liens

• Judgment Liens• Writ of Attachment• Income Tax Liens



RESTRICTIVE COVENANTS

• Restrictions placed on a private owner’s use of land by a nongovernmental entity or individual are restrictive covenants.



ENCROACHMENTS

• A trespass on the land of another.• The encroaching owner is a trespasser.• Most encroachments are accidental or

unintentional.• The only method to accurately determine

the existence of an encroachment is by a survey of the boundary line.



GOVERNMENT RESTRICTIONS ON REAL PROPERTY

• Eminent Domain• Police Power• Taxation• Escheat



APPURTENANCES

• Profits• License• Bailment• Air and Mineral Rights• Water Rights



accretionair rightsappurtenancesassessed valueassessmentavulsionbailmentcondemnationdedicationdominant tenementDormant Minerals Acteasementeasement appurtenanteasement by condemnationeasement by granteasement by implicationeasement by necessityeasements by prescriptioneasement in grosseminent domain

CHAPTER TERMINOLOGY REVIEW


encroachmentencumbranceEscheatgeneral lienintestatejudgmentlicenselienlis pendenslittoral rightsmaterialman’s lienmechanic’s lienMichigan Construction Lien Actmineral rightsnatural flowpolice powerprior appropriation doctrinepriority lien



CHAPTER TERMINOLOGY REVIEW


priority lienprofitprofit a prendrerecovery fundrestrictive covenantsriparian water rightsrunning with the landservient tenementspecial assessmentspecific lientestatetrespasserwrit of attachment



Chapter 12 Encumbrances, Government Restrictions, and Appurtenances 2010©Cengage Learning. All...

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