California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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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.