Which of the following would NOT be considered a blanket encumbrance in a subdivision?

A blanket encumbrance refers to a type of lien or claim that affects multiple properties under a single agreement. In the context of a subdivision, it typically involves debts or claims that apply to numerous lots simultaneously, rather than individual property-specific issues.

The choice regarding the subdivision lots improvement assessment bond is considered the correct answer because this kind of bond is specifically related to improvements made within a subdivision, such as roads, utilities, and other infrastructure. It represents a unique financial obligation that is tied to the assessment of enhancements made to the subdivision rather than a claim that could blanket multiple properties under the same financing arrangement. In contrast, mortgages, homeowners association liens, and construction loans can affect multiple properties or lots at once, with each representing broader financial encumbrances associated with the entire subdivision rather than just individual lots.

For instance, mortgages are typically executed on all lots involved in the financing, making them blanket encumbrances. Homeowners association liens can apply to multiple properties for outstanding dues or assessments due to communal services. Construction loans may also encapsulate financing for improvements across several lots. Therefore, an improvement assessment bond is distinctly separate from these broader financial claims, hence it would not be categorized as a blanket encumbrance.