1. Chapter 3 Private Restrictions on Ownership

2. Encumbrances  Restrictions or limitations on the owner’s ability to use a property.

3. Private Restrictions  Liens  Easements  Licenses  Adverse Possession  Encroachments  Restrictive Covenants

4. Liens  Lien – a financial security interest in a property. Special Liens  Mortgage  Mortgagor-borrower  Mortgagee-lender  Mechanic’s lien General Liens  Judgment Lien  Income Taxes (public restriction)  Property Taxes (public restriction)

5. Easement  right to use a property in a specified manner.  Types of Easements Easement Appurtenant Easement in gross  Creation of Easements by: Express grant or reservation Implication Prescription  Termination of Easements by: Agreement Merger Abandonment

6. Figure 3.2 – Express Grant

7. Figure 3.3 - Express Reservation

8. Licenses and Profits  License – a revocable personal privilege to use land for a particular purpose  Profit - profit a prende – a non-possession interest that permits the holder to remove specified resources from the land

9. Adverse Possession  Process by which title to land is transferred from its legal owner to someone who openly possesses the land for a statutory time period without the permission of the owner.  Requirements to obtain title by adverse possession Actual and exclusive Open and notorious Hostile Continuous Under a claim of right Statutory period

10. Other issues  Encroachment – an unauthorized invasion or intrusion of a fixture, building or other improvement onto another owner’s property.  Restrictive Covenants – also called deed restrictions, are promises made by a landowner or previous landowner that the land will or will not be used in certain ways.  See Real Estate Today Feature “Meadow Brook Ranch Use Covenants” on page 54.

11. End Chapter 3