What are common types of property encumbrances?

The correct answer identifies the common types of property encumbrances as liens, easements, and restrictive covenants. Each of these encumbrances serves a specific purpose in real estate and has implications for property ownership and use.

Liens are claims against a property, often due to unpaid debts or obligations. They are typically used by creditors as a way to secure financing, meaning if the debt isn’t paid, the creditor may have the right to take possession of the property. This can significantly affect the owner’s ability to sell or refinance the property.

Easements represent the legal right to use a part of another person's property for a specific purpose, such as accessing a road or utility services. Easements can impact property value and limit how an owner can use the land.

Restrictive covenants are conditions placed in the deed of a property that restrict how the property may be used. These conditions can protect property values and maintain a certain character or standard for a neighborhood.

The other options listed do not accurately represent common property encumbrances. Property taxes and rental agreements are related to property ownership and management but are not classified as encumbrances. Mortgage applications and credit checks pertain to financing and do not involve claims or restrictions on property. Zoning