Liens (money): tax, mortgage, mechanic's, judgment
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which covenant in a general warranty deed assures the grantee that the property is free from liens or encumbrances except those specifically stated?
Answer: B. The covenant against encumbrances warrants that there are no undisclosed liens, easements, or other encumbrances against the property beyond those expressly noted.
Question 2 of 5
A legal life estate created by law to protect a surviving spouse or family, rather than created by deed or will, is best described as a:
Answer: B. Statutory or legal life estates, such as homestead protection, dower, and curtesy, are created by operation of law to protect a spouse or family, unlike conventional life estates created by an owner's deed or will.
Question 3 of 5
The owner of a single family home sells it himself, without an agent or discriminatory advertising, and refuses to sell to a buyer because of her religion. Under federal law this is:
Answer: B. The Fair Housing Act's FSBO exemption (owner of ≤3 single-family homes, no agent, no discriminatory ads) can cover religion-based refusal — distasteful but exempt. RACE would never be exempt (1866 Act). Many states remove these exemptions — federal question, federal answer.
Question 4 of 5
The limited 'Mrs. Murphy' exemption can apply to:
Answer: A. This narrow exemption may apply to owner-occupied dwellings of 4 or fewer units (and certain single-family sales without a broker) — but discriminatory ADVERTISING is never exempt.
Question 5 of 5
Fair-housing accessibility design rules apply to certain multifamily buildings first occupied after:
Answer: A. The Fair Housing Amendments Act added design/construction accessibility requirements for covered multifamily housing built for first occupancy after March 13, 1991.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Encumbrance = ANY burden on title (money or non-money)
- Liens (money): tax, mortgage, mechanic's, judgment
- Non-money: easements, encroachments, deed restrictions, licenses
- Priority: property-tax & special-assessment liens jump the line
- Everything else usually ranks by recording date — 'first in time, first in right'
Encumbrances — The Family Tree: FAQs
Is Encumbrances — The Family Tree on the real estate exam?
Yes. Property Ownership & Land Use is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
