Which of the following is a common private encumbrance on real property?

• A. Mortgage
• B. Property tax lien
• C. Public nuisance
• D. Zoning restriction

Answer: (D)

Encumbrances on real property are claims or burdens that affect ownership rights. They fall into private encumbrances, created by private parties or agreements, and public encumbrances, created by government action or regulation. A private encumbrance most commonly arises when someone borrows money and the property is pledged as security, creating a mortgage. This puts a lien on the property that must be satisfied before a clear title can pass to a new owner, which is exactly what makes it a private encumbrance: it owes its existence to a private loan agreement between borrower and lender.

The other items are public encumbrances. A property tax lien comes from governmental authority for unpaid taxes. A public nuisance and zoning restriction are actions or rules imposed by government to manage safety, health, and land use. So, among these options, the typical private encumbrance you’d see on real property is a mortgage.