EXERCISE 5.3 Nonfinancial encumbrances

A right to enter another’s land and take something away from it, such as timber or minerals, is called a license.

The holder of a profit has a possessory interest in the land.

An easement is irrevocable, while a license is revocable.

An encroachment is a trespass, and a court may order an encroachment to be removed.

If ignored, a license could ripen into a prescriptive easement or even title by adverse possession.

An encroachment is legally classified as an encumbrance.

A license to use another’s land creates a temporary interest in that land for the license holder.