Wisconsin Real Estate Sales Practice Exam

The right that allows a property owner to secure a loan against the property is referred to as "encumber." When a property is encumbered, it means that a lien or claim is placed against the property, often for the purpose of borrowing money. In this context, when a property owner takes out a loan, such as a mortgage, the lender typically places a lien against the property as a form of security for repayment. This gives the lender legal rights concerning the property if the borrower defaults on the loan.

By encumbering the property, the owner is utilizing it as collateral, which is a common practice in real estate transactions. This right is fundamental in real estate finance, as it allows individuals to leverage their property to obtain financing for various purposes, such as purchasing a new home, making improvements, or consolidating debt.

Additionally, the other options—exclude, possess, and control—relate to different aspects of property rights. "Exclude" refers to the property owner's right to prevent others from entering or using their property; "possess" refers to the right to occupy or use the property; and "control" relates to the owner's ability to make decisions regarding the property. While all these rights are important, only the right to