Encumbrance
From Open Risk Manual
Revision as of 14:45, 13 February 2020 by Wiki admin (talk | contribs)
Definition
Encumbrance. It is a claim against a property held by another party. An encumbrance can take several forms: mortgages, claims by other parties, court judgments, pending legal action, unpaid taxes, restrictive deed or loan covenants, easement rights of the neighbors, or zoning ordinances. An encumbrance normally impacts the transferability of the property.
