Understanding Encumbrance: Definition, Example, and Types of Encumbrances

An encumbrance is a claim against a property by a party that is not the owner which can impact the transferability of the property and restrict its free use. Encumbrance covers a wide range of both financial and non-financial claims on a property, affecting the marketability of a security. Some common types are leases, liens, easements, and mortgages.
a739

• #education
• #encumbrance