An easement, a restrictive covenant and a mortgage are all encumbrances
A worked RES examination question on encumbrances and title, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
An owner obtains a copy of his own title for the first time in twenty years and is surprised by what appears on it. There is an easement in favour of the neighbouring plot allowing a pipe to run beneath his garden, a restrictive covenant limiting any building on the land to two storeys, and the mortgage he granted his bank in 2015 and has been paying down since. He had thought of the property as unencumbered because nobody had ever raised any of these with him, and he asks his agent which of the three are properly described as encumbrances.
Which statement is correct?
The answer, and why
Answer: A
The rule. An easement, a restrictive covenant and a mortgage are all encumbrances — burdens registered against the title.
Why A is correct. All three.
The other options.
- B excludes the easement and covenant as planning matters
- C excludes the mortgage as personal
- D ties encumbrance to the existence of a caveat.
Exam note. An encumbrance is anything that burdens the title, whoever benefits from it.
More on Encumbrances and title
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