Ace the California Real Estate Exam 2026 – Your Key to Property Success!

A blanket encumbrance is a legal term that refers to a claim or lien that affects multiple properties or lots in a subdivision as a whole, rather than being specific to an individual parcel. In the context of the options provided, a mechanic's lien typically arises from unpaid work or materials provided to a specific property, making it a specific encumbrance tied to an individual lot.

On the other hand, a subdivision lot improvement assessment is imposed on all lots within the subdivision for common improvements, making it a blanket encumbrance. Similarly, a trust deed can encumber all plots in a subdivision as security for a loan. Therefore, the mechanic's lien, being specific to a property for which the work was done, exemplifies a situation that does not represent a blanket encumbrance. Recognizing the characteristics that define blanket encumbrances helps clarify the nature of each option in relation to real estate practice and encourages a deeper understanding of property rights and liabilities in subdivisions.