Which of the following encumbrances affects the physical use of the property?

An easement is an encumbrance that grants specific rights to use a portion of another person's property for a designated purpose, thereby affecting the physical use of that property. This legal right to use part of the property can impact how the property owner can utilize their land, as well as how other potential users can access it. For instance, if a property has a utility easement, the utility company may need access to run power lines or maintain infrastructure, which could restrict or dictate how the property owner can develop or use that section of their land.

In contrast, while a mortgage represents a financial claim on a property, it doesn’t influence its physical use. Title insurance protects against potential defects in the title but also does not impact how the property can be physically used. A lease, while it creates a right for a tenant to occupy and use the property, is considered a contractual agreement rather than an encumbrance that directly affects the physical characteristics of the property itself. Therefore, the easement stands out as the correct answer, as it specifically alters the physical use of the land in question.