What is an Encumbrance

An Encumbrance is any charge or claim against a Property.   The person or entity that issues the Encumbrance acquires a legal right to the Property.   An Encumbrance remains in effect until the owner resolves the problem which caused the Encumbrance.   An Encumbrance on a Property can cause problems when transferring ownership of the Property.

The terms Encumbrance and Lien are often used interchangeably but there are differences.   All Liens are Encumbrances but not all Encumbrances are Liens.