A lien is described as which type of encumbrance?

A lien is classified as a monetary encumbrance because it represents a legal claim against a property, typically for the purpose of securing the repayment of a debt. When a lien is placed on a property, it indicates that the property serves as collateral for a monetary obligation, such as a mortgage or a construction loan. Consequently, the lienholder has the right to seek compensation or payment from the property value if the debt remains unpaid.

In contrast, non-monetary encumbrances may include easements or restrictions that don't involve a financial claim but instead affect the use or enjoyment of the property. Temporary restrictions might refer to zoning laws or specific permits that control how property can be used over a certain timeframe. Environmental regulations are distinct legal requirements aimed at protecting natural resources and imposing guidelines on property use, but they don’t represent a financial claim. Thus, the nature of a lien as it secures a debt makes it distinctly a monetary encumbrance.