1. Chapter 12 Encumbrances, Government Restrictions, and Appurtenances 2010©Cengage Learning. All Rights Reserved.

2. IN THIS CHAPTER An encumbrance is anything that lessens the bundle of rights in real property. Most encumbrances are interests in the property that create debt or give use control. Easements, liens, restrictive covenants, and encroachments. 2010©Cengage Learning. All Rights Reserved.

3. EASEMENTS a nonpossessory interest in land owned by another. Easements in Gross Easements Appurtenant 2010©Cengage Learning. All Rights Reserved.

4. Creation of Easements Appurtenant 1. deed (grant or reservation) 2. necessity and intent 3. prescription 4. implication 5. condemnation 2010©Cengage Learning. All Rights Reserved.

6. LIENS A claim or charge against the property of another. Priority of Liens Real Property Tax Liens Ad Valorem Tax Special Assessments Mortgage Liens Mechanic’s & Materialman’s Liens 2010©Cengage Learning. All Rights Reserved.

7. Michigan Construction Lien Act To protect and enforce, by lien, the rights of persons performing labor or providing material or equipment for the improvement of real estate. Recovery Fund Lis Pendens 2010©Cengage Learning. All Rights Reserved.

8. General Liens Judgment Liens Writ of Attachment Income Tax Liens 2010©Cengage Learning. All Rights Reserved.

9. RESTRICTIVE COVENANTS Restrictions placed on a private owner’s use of land by a nongovernmental entity or individual are restrictive covenants. 2010©Cengage Learning. All Rights Reserved.

10. ENCROACHMENTS A trespass on the land of another. The encroaching owner is a trespasser. Most encroachments are accidental or unintentional. The only method to accurately determine the existence of an encroachment is by a survey of the boundary line. 2010©Cengage Learning. All Rights Reserved.

11. GOVERNMENT RESTRICTIONS ON REAL PROPERTY Eminent Domain Police Power Taxation Escheat 2010©Cengage Learning. All Rights Reserved.

12. APPURTENANCES Profits License Bailment Air and Mineral Rights Water Rights 2010©Cengage Learning. All Rights Reserved.

13.  accretion  air rights  appurtenances  assessed value  assessment  avulsion  bailment  condemnation  dedication  dominant tenement  Dormant Minerals Act  easement  easement appurtenant  easement by condemnation  easement by grant  easement by implication  easement by necessity  easements by prescription  easement in gross  eminent domain CHAPTER TERMINOLOGY REVIEW 2010©Cengage Learning. All Rights Reserved.  encroachment  encumbrance  Escheat  general lien  intestate  judgment  license  lien  lis pendens  littoral rights  materialman’s lien  mechanic’s lien  Michigan Construction Lien Act  mineral rights  natural flow  police power  prior appropriation doctrine  priority lien

14. CHAPTER TERMINOLOGY REVIEW 2010©Cengage Learning. All Rights Reserved.  priority lien  profit  profit a prendre  recovery fund  restrictive covenants  riparian water rights  running with the land  servient tenement  special assessment  specific lien  testate  trespasser  writ of attachment