An encumbrance is a claim on your property that is not from you. It can limit what you can do with the property until the encumbrance is lifted and it also limits how much money you will get for the property because people are afraid to buy something that has an encumbrance. Some types of encumbrances are mortgages, easements, and tax liens. An encumbrance can be on real estate or personal property.
Frequently Asked Questions
What are the encumbrances on title?
An encumbrance can restrict the owner’s ability to transfer title to their home. It is a right or claim that another person has on your property. It will show up in an abstract of the title.
Are all liens encumbrances?
Yes. A lien is a type of encumbrance. All liens are encumbrances, but not all encumbrances are liens.