What is a real estate encumbrance?

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A real estate encumbrance refers to any legal right or claim that restricts or limits the property owner's ability to use or transfer their property. It is a type of burden or liability attached to the property. Examples of real estate encumbrances include mortgages, liens, easements, and restrictive covenants. These encumbrances can affect the property's value, use, or title.

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A real estate encumbrance refers to any claim, lien, or liability on a property that may restrict its transfer of ownership or diminish its value. Encumbrances can be imposed by creditors, government agencies, or other parties that hold a legal interest or right in the property. Examples of real estate encumbrances include mortgages, easements, liens, property taxes, and restrictive covenants. These encumbrances are typically recorded in public records and are disclosed during a property transaction to inform potential buyers about any existing obligations or limitations on the property.