Encumbrance (law)

An encumbrance in law refers to a legal claim or restriction on a property that affects its ownership or transfer. It includes liens, mortgages, easements, or claims that limit the owner's rights to freely use, sell, or transfer the property. Encumbrances do not usually transfer with ownership unless settled or removed, and they are typically recorded to notify potential buyers or lenders. Essentially, they are legal burdens or interests that encumber the property's title, impacting how the property can be used or transferred until the encumbrance is satisfied or resolved.