Question

A liability on property is known as

• A. Ownership
• B. Lease
• C. Consideration
• D. Encumberance

Hint:

- \textbf{Encumbrance} = Burden or liability on property.
- It may hinder transfer or use of property until cleared.
- Always check for encumbrance when buying or leasing property to avoid legal issues.

Answer 1

The Correct Option is D

A liability or claim attached to property which affects its transfer or use is called an Encumbrance.
It can be in the form of mortgages, easements, liens, leases, or restrictions that burden the property.
- Ownership refers to having legal title or rights to the property.
- Lease gives someone the right to use the property temporarily in exchange for rent.
- Consideration is the value exchanged in a contract.
None of these directly represent a liability on the property like an encumbrance does.