Encumbrances Practice Test 2025 – Complete Exam Prep Guide

Public records are essential in the identification of encumbrances because they maintain documentation of liens and easements associated with properties. These records serve as the official repository for non-possessory interests related to real property. When searching for encumbrances, such as mortgages, judgments, or easements, one can turn to public records to obtain accurate and comprehensive information.

Liens are legal claims against a property, often due to unpaid debts, and easements are the rights to use another's property for a specific purpose. By keeping detailed records of these encumbrances, public records ensure transparency and allow potential buyers, lenders, and other stakeholders to assess the potential risks and obligations attached to a property before proceeding with a transaction. Accessing this information is crucial for making informed decisions regarding property ownership and investment.