Encumbrance

Definition: An encumbrance is a claim, interest, or restriction held by someone other than the owner that affects a property’s title, use, or transfer. Examples include liens, easements, and restrictive covenants.

Example

A property is subject to a mortgage lien and a utility easement. Both are encumbrances, but they affect the property in different ways.

Keep the distinction clear

Not every encumbrance is a debt, and not every encumbrance prevents a sale. A lien secures an obligation; an easement can allow a use without requiring the owner to pay a debt.

Related terms

Lien · Easement · Deed Restrictions · Title

Keep studying

Deeds, Abstracts, Title Opinions, and Title Insurance

References: Cornell LII: Encumbrance

Pronunciation (US): in-KUM-bruhnss (capitals show stress)

Pronunciation reference: Merriam-Webster