Encumbrance
An encumbrance refers to a claim or liability attached to a property that may affect its transferability or value. Common examples include mortgages, liens, or easements. For instance, if a home has a mortgage, the lender has a claim to the property until the mortgage is fully paid off. Encumbrances must be resolved or acknowledged during real estate transactions, as they can limit ownership rights or require the owner to fulfill certain obligations. Essentially, it means there are legal restrictions or financial responsibilities associated with a property that can impact its use or sale.
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An encumbrance is a legal claim or restriction on a property that can affect its use or transfer. It can include mortgages, liens, easements, or zoning restrictions. For example, when you take out a mortgage on a house, the lender has an encumbrance on the property until the loan is paid off. This means you cannot sell or modify the property freely without addressing the encumbrance. Essentially, it represents rights or obligations that may limit what you can do with your property. Understanding encumbrances is important when buying, selling, or managing real estate.