Encumbrance

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An Encumbrance is:

 

A claim, lien, charge. or liability attached to and binding on real property that may lessen its value or burden, obstruct or impair the use of a property but not necessarily prevent transfer of title
A right or interest in a property held by one who is not the legal owner of the property. Also spelled encumbrance.

 

There are two general classifications of encumbrances:

 

Those that affect the title, such as judgments, mortgages, mechanics' liens and other liens, which are charges on property used to secure a debt or obligation
Those that affect the physical condition or use of the property, such restrictions, encroachments, leases, and easements.

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