Which of the following is an encumbrance, but not a lien?

• A. Deed restriction
• B. Mortgage
• C. Property tax lien
• D. Judgment lien

Answer: (A)

An encumbrance refers to any claim, right, or interest held by one party that affects or limits the rights of another party in relation to a property. A deed restriction is a type of encumbrance that typically involves specific limitations or conditions imposed on the use of the property by the property owner. These restrictions can dictate how the property can be used, what structures can be built, or other essential aspects of property usage.

While undoing a deed restriction might involve legal actions or negotiations, it is distinct from a lien, which is a financial claim against the property. Liens, such as mortgages or tax liens, represent amounts owed to creditors and create a financial obligation on behalf of the property owner. Therefore, a deed restriction is an encumbrance that doesn't create a financial claim against the property, differentiating it from liens like mortgages and property tax or judgment liens. Those liens typically ensure payment for debts owed, thus serving a different purpose compared to the conditions set by a deed restriction.