(a) Real property isdeemed unencumbered within the meaning of this Chapter unless the securityinstrument thereon establishes a first lien upon such real property or interesttherein.
(b) Notwithstanding theprovisions of the immediately preceding subsection, real property is not deemedencumbered within the meaning of this Chapter merely by reason of the existenceof:
(1) An instrumentreserving a right‑of‑way, sewer rights, or rights in wells; or
(2) Building restrictionsor other restrictive covenants; or
(3) A lease under whichrents or profits are reserved by the owner; or
(4) Current taxes orassessments not yet payable; or
(5) Other encumbranceswhich, in accordance with sound lending practices in the locality, are notregarded as constituting defects in title to real property. (1981,c. 282, s. 3; 1999‑179, s. 1.)
(a) Real property isdeemed unencumbered within the meaning of this Chapter unless the securityinstrument thereon establishes a first lien upon such real property or interesttherein.
(b) Notwithstanding theprovisions of the immediately preceding subsection, real property is not deemedencumbered within the meaning of this Chapter merely by reason of the existenceof:
(1) An instrumentreserving a right‑of‑way, sewer rights, or rights in wells; or
(2) Building restrictionsor other restrictive covenants; or
(3) A lease under whichrents or profits are reserved by the owner; or
(4) Current taxes orassessments not yet payable; or
(5) Other encumbranceswhich, in accordance with sound lending practices in the locality, are notregarded as constituting defects in title to real property. (1981,c. 282, s. 3; 1999‑179, s. 1.)
(a) Real property isdeemed unencumbered within the meaning of this Chapter unless the securityinstrument thereon establishes a first lien upon such real property or interesttherein.
(b) Notwithstanding theprovisions of the immediately preceding subsection, real property is not deemedencumbered within the meaning of this Chapter merely by reason of the existenceof:
(1) An instrumentreserving a right‑of‑way, sewer rights, or rights in wells; or
(2) Building restrictionsor other restrictive covenants; or
(3) A lease under whichrents or profits are reserved by the owner; or
(4) Current taxes orassessments not yet payable; or
(5) Other encumbranceswhich, in accordance with sound lending practices in the locality, are notregarded as constituting defects in title to real property. (1981,c. 282, s. 3; 1999‑179, s. 1.)
