Posted on: 02nd Aug, 2009 09:36 pm
what is encumbrance?
Hi Angela,
Encumbrance is similar to a lien. In fact, a lien is one type of encumbrance. It is a legal term that is used to refer to anything which restricts the title of the property. It means that as long as there is an encumbrance, you cannot hold a free and clear title to the property. Mortgages, leases are also one type of encumbrances.
Encumbrance is similar to a lien. In fact, a lien is one type of encumbrance. It is a legal term that is used to refer to anything which restricts the title of the property. It means that as long as there is an encumbrance, you cannot hold a free and clear title to the property. Mortgages, leases are also one type of encumbrances.
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