Legal TermsHomebuying Glossary

Encumbrance

Any claim, lien, or restriction attached to a property that could affect its use or transfer.

In plain English

An encumbrance is a broad legal term covering anything that limits a property's use or clouds its title — including liens, easements, and deed restrictions. Not all encumbrances are bad; some, like a shared-driveway easement, are simply part of normal ownership.

Why it matters

A title search identifies encumbrances so you know exactly what you're agreeing to before you close.

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