Encumbrance

An encumbrance is any claim, lien, or restriction on a property that may affect its value or transfer.

What Encumbrance means

Encumbrances include mortgages, liens, easements, and deed restrictions. Some, like an easement, stay with the property; others, like a lien, must be cleared at sale.

Florida example

A Florida title search reveals a utility easement crossing the backyard, an encumbrance the buyer accepts, plus an old lien that must be paid off before clear title can transfer.

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