Definition
Any claim, lien, easement, or restriction that affects title or limits use of a property.
Example
The title commitment listed three encumbrances: a mortgage, a utility easement, and a recorded covenant.
Related terms
- Abstract of Title
- Adverse Possession
- Affidavit of Title
- Certificate of Occupancy
- Chain of Title
- Cloud on Title
Frequently asked questions
What does Encumbrance mean in real estate?
Any claim, lien, easement, or restriction that affects title or limits use of a property.
How is Encumbrance used in practice?
The title commitment listed three encumbrances: a mortgage, a utility easement, and a recorded covenant.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.