What might a liability in real estate typically include?

A liability in real estate typically includes a mortgage on the property because it represents a financial obligation that the owner is responsible for repaying. When a property is financed through a mortgage, the lender holds a security interest in the property; if the borrower fails to make payments, the lender has the right to foreclose on the property. This liability is crucial to understand as it directly affects the equity and financial health of the property owner.

In contrast, home equity refers to the portion of the property that the owner truly owns free and clear after subtracting liabilities like mortgages, so it is not considered a liability. Property appreciation refers to an increase in the property's value over time and does not represent a financial obligation. The overall value of the property is simply a measure of worth and does not indicate any debt associated with it. Thus, a mortgage stands out as the primary liability in real estate ownership.