Encumbrance | Practical Law

Encumbrance | Practical Law

Encumbrance

Encumbrance

Practical Law Glossary Item 1-566-2602 (Approx. 3 pages)

Glossary

Encumbrance

Also known as incumbrance. In a real estate context, any burden, interest, right, or claim that adversely affects a real property's use and value but does not necessarily prohibit the ability to transfer title.
Sometimes the term is used more narrowly to refer just to security interests or similar arrangements affecting real property, including mortgages and deeds of trust.
Other examples of encumbrances are: