What are encumbrances in real property?

Encumbrances in real property refer to restrictions or limitations imposed on the use or transfer of property. These can take various forms, including liens, easements, or deed restrictions, which may affect the owner's ability to utilize the property fully or to sell it without addressing these limitations. For example, a lien may be placed on a property due to unpaid taxes or debts, which would need to be resolved before the property could be sold. Similarly, an easement might grant a neighbor the right to use a portion of the property for access, impacting how the owner can use that part of their land.

By understanding encumbrances, property owners and potential buyers can better assess the implications of purchasing a property and how these restrictions might influence both the property's value and the owner's plans for its use.