Encumbrances Practice Test 2026 - Free Encumbrance Practice Questions and Study Guide

The correct answer is that a license is granted when one has permission to use someone else's land for a specific purpose. A license can be understood as a personal, revocable permission that allows an individual or a group to enter or use someone else's property without transferring any interest in the property itself.

For example, if someone is allowed to hunt on a property owner's land, that is typically governed by a license. It does not confer any long-term rights to the land and can be rescinded at any time by the property owner. This is distinct from other arrangements, such as an easement, which grants a more permanent right to use the land (for example, passing through a property) and remains even if the property changes ownership.

In contrast to a lease, a license does not involve any leasehold interest or the transfer of exclusive possession of the land; instead, it simply permits specific actions on another's property. Title denotes ownership and is entirely different from mere permission to use land. Understanding the nuances between these terms is essential to grasping real property law and how rights are apportioned between parties.