What is an encumbrance that restricts the use of a property through a private deed called?

Prepare for the VanEd National Real Estate Exam. Study with interactive quizzes and detailed explanations. Get ready to ace your test with confidence!

A covenant is a type of encumbrance that restricts the use of a property through a private deed. It is a legally binding promise between parties regarding the use of the property. For example, a covenant may restrict the owner from building a certain type of structure, maintaining a specific type of landscaping, or conducting certain activities on the property. The intention behind a covenant is typically to maintain a certain standard of appearance or use within a community or development, protecting property values and ensuring that all homeowners adhere to agreed-upon standards.

In contrast, a lien represents a legal claim or right against a property, usually for the purpose of securing debt repayment, and does not inherently restrict use in the same way a covenant does. A lease, while it grants the right to use property, is an agreement between a landlord and tenant for a set period and does not apply to the property owner’s use restrictions through a private deed. An easement allows a party to use a portion of another's property for a specific purpose but is also different from the use restrictions imposed directly by a covenant. Thus, covenants specifically address the expectations and restrictions agreed upon by property owners and are essential tools in maintaining the character of neighborhoods and developments.

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