Encumbrances and police powers are:

• A. Interests that do not include possession.
• B. Limited forms of an estate.
• C. Unrelated to interests.
• D. Types of public interests.

Answer: (A)

Encumbrances and police powers are non-possessory interests in real property. An encumbrance is a claim or restriction that burdens the property—like a lien, easement, or deed restriction—but it does not give possession or ownership to the holder. Police power is the government’s authority to regulate land use, zoning, building codes, and other standards to protect the public welfare; these rules limit how the property can be used, yet the owner remains in possession. Because neither creates possession for the holder, they’re best described as interests that do not include possession.