Arizona Real Estate Exam Prep: Easements and Encumbrances

Last updated: April 2026

When preparing for the Arizona real estate licensing exam, understanding the rights, limitations, and claims placed on property is absolutely critical. Property ownership is rarely absolute; it is frequently subject to the rights of others. These limitations are broadly categorized as encumbrances. For a comprehensive overview of all exam topics, be sure to check out our Complete Arizona Exam Guide.

This study guide dives deep into the definitions, legal frameworks, and practical applications of easements and encumbrances under Arizona law (primarily governed by Arizona Revised Statutes Title 33). Mastering these concepts will not only help you pass your exam but also protect your future clients from unexpected title issues.

What is an Encumbrance?

An encumbrance is any claim, lien, charge, or liability attached to and binding real property that may lessen its value or burden, obstruct, or impair the use of the property. It is vital to remember that while an encumbrance diminishes the property's value or restricts its use, it does not prevent the transfer of title.

Encumbrances are generally divided into two main categories:

1. Financial Encumbrances (Liens): Mortgages, property taxes, mechanic's liens, and judgments.
2. Non-Financial Encumbrances: Easements, deed restrictions (CC&Rs), and encroachments.

Understanding Easements in Arizona

An easement is a non-possessory right to use the land of another for a specific, limited purpose. The person who owns the land still retains title, but the easement holder has a legal right to use a portion of it.

Types of Easements

The Arizona real estate exam will test your ability to differentiate between the following types of easements:

• Easement Appurtenant: This easement involves two adjacent parcels of land owned by different parties. The parcel that benefits from the easement is the dominant tenement, while the parcel burdened by the easement is the servient tenement. Because an easement appurtenant "runs with the land," it transfers automatically when the property is sold.
  Example: Parcel A (dominant) is located behind Parcel B (servient). The owner of Parcel A has a driveway easement across Parcel B to reach the main road in Sedona.
• Easement in Gross: This involves only one tract of land (a servient estate) and benefits a specific person or entity rather than another parcel of land. Commercial easements in gross, such as those held by Arizona Public Service (APS) or Salt River Project (SRP) for utility lines, are assignable and survive the sale of the property.
• Easement by Necessity: Created by court order when a property is completely landlocked without any legal access to a public road. Arizona law strongly favors land having access, so courts will grant an easement by necessity over an adjacent parcel if both parcels were once part of a larger, single tract.

Arizona Prescriptive Easements

An easement by prescription is acquired through continuous, open, notorious, and hostile use of another's property without their permission. Under Arizona Revised Statutes (ARS § 12-526), the statutory period required to establish a prescriptive easement is strictly 10 years.

Exam Tip: Do not confuse an easement by prescription with adverse possession. Adverse possession results in a transfer of title (ownership), while a prescriptive easement only results in the right of use. Both, however, require 10 years of continuous use in Arizona.

Other Common Encumbrances in Arizona

Liens and Priority

A lien is a financial encumbrance representing a monetary claim against property to secure a debt. Liens can be voluntary (like a mortgage) or involuntary (like a tax lien).

In Arizona, Property Tax Liens are always in first position. Regardless of when a mortgage or mechanic's lien was recorded, unpaid *ad valorem* property taxes take ultimate priority. Special assessments hold the second priority position.

Mechanic's Liens: These are specific, involuntary liens placed by contractors, laborers, or material suppliers who improve a property but remain unpaid. Under ARS § 33-993, an original contractor in Arizona has 120 days after the completion of the project to record a mechanic's lien. The priority of a mechanic's lien dates back to the day the work began, not the day it was recorded.

Deed Restrictions (CC&Rs)

Covenants, Conditions, and Restrictions (CC&Rs) are private agreements that restrict the use of real property. In Arizona, where Homeowners' Associations (HOAs) govern a massive percentage of planned communities, CC&Rs are incredibly common. They dictate everything from exterior paint colors to parking regulations. Because these are private encumbrances, they are enforced by the HOA or neighboring property owners through civil lawsuits, not by local law enforcement.

Encroachments

An encroachment is the unauthorized physical intrusion of a building or other form of real property onto an adjoining property. Examples include a block wall built two feet over the property line or a mature Palo Verde tree whose branches hang significantly over a neighbor's roof. Encroachments are typically discovered via a professional land survey. If left uncontested for 10 years in Arizona, an encroachment could potentially evolve into a prescriptive easement or a claim for adverse possession.