Which encumbrance can result from a covenant, condition, or restriction?

Study for the Rhode Island Real Estate Sales Test. Access multiple choice questions with detailed explanations. Prepare effectively and ace your exam with confidence!

A covenant, condition, or restriction creates specific obligations concerning the use of real property, which can lead to encumbrances such as liens. When a property owner violates these terms, it can lead to a legal claim that functions similarly to a lien. This is because such violations may result in financial consequences, including judgment liens if a court action is necessary to enforce the covenant or restriction.

For example, if a property owner fails to maintain a property according to community standards set by a restrictive covenant, they could ultimately face legal action that not only enforces the original terms but may also involve financial penalties. These financial consequences can create a lien against the property, reflecting the obligation owed due to the violation.

Other encumbrances like leases, licenses, and liabilities do not stem directly from covenants, conditions, or restrictions in the same manner. Leases pertain to the temporary use of property, while licenses provide permission without transferring ownership or interests. Liabilities may arise from various obligations but do not specifically relate to the covenants governing the property's use or restrictions imposed on it. Thus, the connection between covenants and the potential for liens makes it clear why liens are the appropriate answer in this context.

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