Encumbrance
An encumbrance is a claim, lien, or legal restriction on a property that limits the owner's ability to transfer title or affects the property's value.
| Encumbrance Type | Description |
| Mortgage | Lender's secured interest |
| Lien | Claim for unpaid debts |
| Easement | Right to use portion of property |
| Restriction | Limitation on use or transfer |
| Lease | Tenant's rights in occupation |
| Impact on Transaction | Effect |
| Must be cleared | Or buyer accepts encumbrance |
| Reduces value | Affects purchase price |
| Delays closing | Resolution time required |
| Disclosure required | Seller must inform buyer |
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