Can encumbrances be removed?

Encumbrances can indeed be removed, and the correct choice highlights the various methods through which this can occur. Specifically, encumbrances may be cleared by making payments to satisfy debts, engaging in negotiations where parties agree to terms that remove the encumbrance, or taking legal action to discharge the encumbrance, depending on the situation and applicable laws.

For example, if a property has a lien due to unpaid taxes or mortgage debt, the property owner can pay the owed amount to have the lien lifted. Similarly, easements or other types of encumbrances can sometimes be negotiated away if both parties agree to new terms.

The other options do not accurately account for the flexible methods available for removing encumbrances. Legal action alone is not the only route, and encumbrances are not permanent in nature, as financial obligations can be settled and arrangements made to lift those restrictions. Thus, the ability to remove encumbrances is contingent on a range of actions that can be taken to resolve the issue.