Encumbrances

A Encumbrance is defined as an interest in real property that is held by someone who is not the owner. Anything that burdens or affects the title or the use of the title is an encumbrance. A property is considered to be "encumbered" when burdened with legal litigations against the title.

Encumbrances fall into two categories :

(1) Those that affect the title , known as Money Encumbrances

(2) Those that affect the use of the property , known as Non - Money Encumbrances

Encumbrances that create a legal obligation to pay are known as liens. A lien uses real property as security for the payment of a certain debt or debts.

Common types of liens are trust deeds and mortgages, mechanic`s liens , tax liens, and special assessments, attachments, and judgements. Those type of encumbrances that affect the physical use of the property are easements, building restrictions, and zoning requirements and encroachments.

An Encumbrance is a limitation on real property