definition of encumbrance

What is an Encumbrance in Real Estate

March 8, 2024

What is an Encumbrance in Real Estate? An Encumbrance is any claim against an asset by an entity that is not the owner. For example; liens, easements, leases, mortgages, or restrictive covenants. Encumbrances impact the transferability and/or use of subjected properties. Not all of these encumbrances will prevent a property