California Real Estate Practice Exam

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All liens are encumbrances. All encumbrances are?

profits
limitations
benefits
leases

The correct answer is: limitations

All encumbrances are limitations. A lien, which is a legal claim against someone's property, is a type of encumbrance. However, not all encumbrances are liens. For example, a mortgage is also considered an encumbrance, but it is not a lien. Therefore, option B, limitations, is the only correct answer as it encompasses both liens and other types of encumbrances. Options A, C, and D are incorrect because they do not accurately describe the relationship between liens and encumbrances.