Which type of encumbrance can affect co-owners of property?

The correct answer is based on the understanding that condos and subdivision rules can impose specific obligations and restrictions on all co-owners of property. In a condominium or within a subdivision, there are often shared amenities and common areas, governed by homeowner association rules and regulations. These rules can dictate how the property is used, what modifications can be made, and other operational matters that directly impact all co-owners. Since these encumbrances are tied to the shared nature of ownership in such properties, they can significantly influence the rights and responsibilities of each co-owner.

While leases and liens are indeed forms of encumbrance, they typically affect individual owners rather than all co-owners collectively in the way that common community rules do. Leases may pertain to a specific unit or portion acquired by an individual, while liens are often related to debts owed by an individual owner, not directly impacting co-ownership dynamics. Chain of title in mortgages relates to the history of ownership and can impact financial aspects but does not specifically address the day-to-day operational rules or obligations that affect all co-owners within a shared community setting.