Mastering Easements and Encumbrances for the Arkansas Real Estate Exam

Last updated: April 2026

If you are preparing for the Arkansas real estate licensing exam, understanding property rights and restrictions is absolutely critical. A property's title is rarely completely free of external claims or restrictions. These claims—known broadly as encumbrances—can significantly impact how a property is used, transferred, and valued. Whether you are dealing with a residential lot in Little Rock or a sprawling agricultural tract in the Delta, you will encounter easements, liens, and other encumbrances throughout your real estate career.

This article will break down the essential concepts of easements and encumbrances, specifically tailored to Arkansas state laws and Arkansas Code Annotated (A.C.A.) Title 18 (Property). For a broader overview of everything you need to know to pass your test, be sure to check out our Complete Arkansas Exam Guide.

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. Importantly, an encumbrance does not necessarily prevent the transfer of title, but it does transfer with the title.

Encumbrances are generally divided into two main categories: financial encumbrances (liens) and physical/usage encumbrances (easements, encroachments, and deed restrictions).

Financial Encumbrances: Liens in Arkansas

A lien is a financial claim placed against property to secure the payment of a debt. If the debt is not paid, the lienholder may have the right to force the sale of the property to satisfy the obligation. For the Arkansas exam, you must understand the priority and statutory timelines of different liens:

• Property Tax Liens: In Arkansas, ad valorem (property) tax liens hold the highest priority. Regardless of when other liens were recorded, unpaid property taxes will always be paid first in a foreclosure sale.
• Mechanic’s and Materialman’s Liens: Under Arkansas law, contractors, subcontractors, or suppliers who provide labor or materials for property improvement can file a mechanic's lien if unpaid. A crucial number to remember for your exam: In Arkansas, a mechanic's lien must be filed within 120 days of the last date labor or materials were provided.
• Mortgage Liens: These are voluntary, specific liens created when a buyer uses the property as collateral for a loan.
• Judgment Liens: These are involuntary, general liens placed on all properties owned by a debtor in the county where the court judgment was recorded. In Arkansas, judgment liens are generally valid for 10 years and can be renewed.

Physical and Usage Encumbrances

Unlike liens, which affect the financial clear title of a property, physical encumbrances affect the property's physical condition or the owner's right to use it.

• Deed Restrictions (Restrictive Covenants): Private agreements that restrict the use of the real estate in some way, often established by developers or subdivisions (e.g., HOA rules prohibiting commercial vehicles in driveways).
• Encroachments: The unauthorized physical intrusion of a building or other form of real property onto an adjoining property (e.g., a neighbor's fence built two feet over the property line).
• Easements: The legal right to use another person's land for a specific, limited purpose. Because easements are highly tested, they require a deeper dive.

Deep Dive: Easements in Arkansas Real Estate

An easement grants the right of use, not the right of ownership. The property owner retains the title, but the easement holder possesses a non-possessory interest in the land.

Types of Easements

You must be able to distinguish between the two primary types of easements:

1. Easement Appurtenant: This involves two adjacent parcels of land owned by different parties. The parcel that benefits from the easement is the dominant tenement, and the parcel burdened by the easement is the servient tenement. An easement appurtenant "runs with the land," meaning it automatically transfers to the new owner when the dominant property is sold.
2. Easement in Gross: This benefits a specific individual or legal entity, rather than a piece of land. A common example is a utility easement, allowing the local Arkansas power company to run lines across a residential backyard. Commercial easements in gross can typically be assigned, but personal easements in gross usually terminate upon the death of the easement holder or sale of the property.

Creation of Easements in Arkansas

Easements can be created in several ways, and the Arkansas exam frequently tests these scenarios:

• By Express Grant or Reservation: Created by a written agreement between parties, often included in the deed.
• By Necessity: Created by court order when a property is entirely landlocked. Arkansas law recognizes that property owners have a right to access public roads. If a parcel is split and one part becomes landlocked, the court will grant an easement by necessity over the seller's remaining land.
• By Prescription: This is a highly testable Arkansas-specific concept. An easement by prescription is acquired through continuous, open, notorious, and hostile use of another's property for a statutorily defined period. In Arkansas, the statutory period for a prescriptive easement is 7 years. This is the same time frame required for adverse possession in the state.