The State Exam refers to CCRs listed in Schedule B2 as what type of exception?

The State Exam refers to CCRs listed in Schedule B2 as what type of exception?

• A. ENCUMBRANCES
• B. LIENS
• C. EASEMENTS
• D. CONTRACTS

Answer: (A)

Covenants, conditions, and restrictions (CCRs) create a burden on the property that runs with the land, affecting how the property can be used. In title work, Schedule B2 lists these kinds of burdens as encumbrances—the broad category that includes restrictions, easements, and other non-ownership interests that limit or affect the title. CCRs are not liens (they don’t represent a debt), nor are they contracts in the sense of a private agreement affecting future transactions. They are restrictions recorded against the property, so they’re classified as encumbrances.

Covenants, conditions, and restrictions (CCRs) create a burden on the property that runs with the land, affecting how the property can be used. In title work, Schedule B2 lists these kinds of burdens as encumbrances—the broad category that includes restrictions, easements, and other non-ownership interests that limit or affect the title. CCRs are not liens (they don’t represent a debt), nor are they contracts in the sense of a private agreement affecting future transactions. They are restrictions recorded against the property, so they’re classified as encumbrances.