TRANSACTION & CLOSING

Encumbrance

Also called: lien · title burden

⌕ Search dictionary
PLAIN-ENGLISH DEFINITION

A claim, lien, restriction, easement or other interest that burdens or affects property title.

What it means in practice.

Encumbrances can affect value, use, financing and closing. Some are ordinary; others require cure, consent or underwriting.

Why it matters.

Title diligence should identify which encumbrances survive closing.

Additional notes.

Encumbrances can affect value, use, financing and closing. Some are ordinary; others require cure, consent or underwriting.

KEEP LEARNING

Build the vocabulary before the transaction clock starts.

Explore the federal framework, exchange structures, replacement-property intelligence and professional roles connected to this term.