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Letter E
property

Encumbrance

A claim, lien, or liability attached to real property that may diminish its value or restrict its use, such as a mortgage, easement, or tax lien.

Encyclopedia entry: Encumbrance

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encumbrance

An encumbrance is a claim against an asset by an entity that is not the owner. Common types of encumbrances against real property include liens , easements , leases , mortgages , or restrictive covenants . Encumbrances impact the transferability and/or use of subjected properties. 

[Last reviewed in July of 2021 by the Wex Definitions Team
]

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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).

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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.