Which of the following is NOT an encumbrance?

The correct choice, which indicates that a free and clear title is not an encumbrance, is grounded in the definition of encumbrances in real estate. Encumbrances refer to any claim, lien, or restriction on a property that may affect its transferability or diminish its value. They can include mortgages, easements, and property taxes, all of which place some type of burden or obligation on the property.

When a property is described as having a free and clear title, it means that there are no outstanding claims, liens, or encumbrances attached to it. The owner holds full ownership rights without any debts or obligations that would affect their title. This implies that the property is in an optimal condition for sale or transfer, making it attractive to potential buyers.

In contrast, mortgages, easements, and property taxes represent various encumbrances. A mortgage is a loan secured by the property itself, an easement grants someone else rights to use a portion of the property for a specific purpose, and property taxes are a financial obligation imposed by the government. None of these restricts ownership in the same way a free and clear title does. Thus, recognizing that a free and clear title is free from encumbrances clarifies its significance