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Exam distinction · Property Ownership

Lien Versus Easement Versus License Versus Encroachment

A lien secures payment. An easement grants a use right. A license gives personal permission that is usually revocable and does not create an estate. An encroachment is a physical intrusion across a boundary. The exam tests the legal effect, not merely whether the item makes title less attractive.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is the exam-ready distinction?

A lien secures payment. An easement grants a use right. A license gives personal permission that is usually revocable and does not create an estate. An encroachment is a physical intrusion across a boundary. The exam tests the legal effect, not merely whether the item makes title less attractive.
Official syllabus mapping for Lien Versus Easement Versus License Versus Encroachment
Official syllabus topicProperty Ownership: Encumbrances and Effects on Property Ownership
Official PSI areaProperty Ownership
Published weight10% of the 100-question national portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026

The Rule

PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.

Side-by-side comparison

Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.

Comparison of Lien, Easement, License, Encroachment
Decision dimensionLienEasementLicenseEncroachment
NatureMonetary claim or security interestNonpossessory right to use another's landPersonal permission to use landPhysical intrusion across a boundary
Interest in landEncumbers titleGenerally an interest in landGenerally not an interest in landCondition, not a granted right
RevocabilityReleased or satisfied under the governing claimEnds by an applicable termination methodUsually revocable, subject to exceptionsRemoved, licensed, sold, or resolved by agreement or law
ExampleRecorded judgment lienDriveway access easementPermission to park for one eventFence built over the lot line

Decision rule

Ask whether the claimant wants money, a continuing use right, temporary permission, or correction of a physical boundary intrusion.

Georgia-specific distinction

Georgia title and survey questions apply these national categories, while Georgia statutes, recorded instruments, and the actual facts control creation, priority, duration, and remedies.

Worked example

Scenario. A neighbor's garage extends two feet across the recorded lot line.

Reason it through. No use right was granted. A permanent structure physically occupies land beyond its boundary.

Answer. The condition is an encroachment.

Common exam traps

  • Calling every encumbrance a lien
  • Confusing permission with an easement
  • Treating an encroachment as a granted right
  • Assuming an easement transfers possession

Original practice questions with detailed explanations

These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

A neighbor's garage extends two feet across the recorded lot line onto the adjoining parcel. No one ever granted permission. What is this condition?

  1. A. An easement appurtenant
  2. B. A license
  3. C. A lien
  4. D. An encroachment
Show answer and explanation →

Answer: D. An encroachment

An encroachment is a physical intrusion of a structure across a boundary. No use right was granted, so it cannot be an easement or license. Calling it a lien is plausible because it hurts value and title, but a lien is a money claim, not a physical intrusion.

Question 2

An owner lets a neighbor park a boat in the side yard for one weekend. Nothing is written or recorded. What has the owner given the neighbor?

  1. A. A license
  2. B. An easement in gross
  3. C. An easement appurtenant
  4. D. An encroachment
Show answer and explanation →

Answer: A. A license

A license is personal permission to use land that is usually revocable and does not create an interest in land. A short, informal permission for one weekend fits that description. An easement is the wrong choice, but an easement is a continuing use right that is generally an interest in land.

Question 3

A contractor who was not paid for a new roof files a claim against the home to secure the amount owed. What type of encumbrance is this?

  1. A. An easement
  2. B. A lien
  3. C. An encroachment
  4. D. A license
Show answer and explanation →

Answer: B. A lien

A lien is a monetary claim that uses the property as security for a debt. The contractor wants payment, not a use right or boundary correction. An easement is the plausible wrong choice because it also appears in title reports, but it grants use of land rather than securing money.

Ready to move on?

You have this distinction down when all of these are true.

  • Define every compared term without using the other term as the definition.
  • Rebuild the comparison table from memory.
  • State the decision rule and Georgia distinction without notes.
  • Solve the worked example after changing one key fact.
  • Explain the rule or fact that makes each distractor wrong.
  • Answer all three original questions correctly in mixed practice on a later day.

Recommended next lesson

Continue with Easement Appurtenant Versus Easement in Gross Versus Prescriptive Easement. Next, the easement types page breaks down the use right from this comparison: appurtenant easements tied to a parcel, easements in gross held by a person or utility, and prescriptive easements acquired through use.

Return to the complete exam-concept library or the Property Ownership hub.

Lien Versus Easement Versus License Versus Encroachment questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

Is Lien Versus Easement Versus License Versus Encroachment on the Georgia real estate exam?

Yes. It maps to the official Property Ownership area, which represents 10% of the 100-question national portion. PSI does not publish a guaranteed question count for this individual distinction.

What is the fastest way to distinguish Lien Versus Easement Versus License Versus Encroachment?

Ask whether the claimant wants money, a continuing use right, temporary permission, or correction of a physical boundary intrusion.

What Georgia-specific point should I remember?

Georgia title and survey questions apply these national categories, while Georgia statutes, recorded instruments, and the actual facts control creation, priority, duration, and remedies.

How should I study similar-looking real estate terms?

Compare the terms across the same dimensions, classify the key fact before reading the choices, explain why each distractor belongs to a different concept, and retest the distinction later in mixed practice.