Which of the following describes a valid use of property that limits the rights of the owner?

An easement is a legal right that allows one party to use the property of another for a specific purpose. This usage can impose restrictions on the property owner's rights because, while the owner retains ownership, they cannot fully control how that portion of their property is used. For example, if a utility company has an easement to run power lines across a property, the property owner cannot build structures that would obstruct or interfere with the utility's access to those lines. Therefore, an easement illustrates a valid use of property that limits the rights of the owner while still serving a functional purpose, benefiting both parties involved.

In contrast, a mortgage does not inherently restrict the land use; rather, it is a financial agreement where the property acts as collateral for a loan. Title insurance protects against potential defects in the title but does not impose limitations on property use itself. Code compliance refers to adhering to local building and zoning laws, which guides how property can be used but is not an encumbrance in the same sense as an easement. Hence, the characterization of an easement as a valid use of property highlighting the limits on owner rights is accurate and critical in understanding different encumbrances.