Which of the following best defines an encumbrance?

Which of the following best defines an encumbrance?

• A. A legal title free from liens
• B. A liability attached to a property
• C. An ownership claim without restrictions
• D. A type of joint tenancy

Answer: (B)

An encumbrance refers to a liability or claim that is attached to a property, which can affect the owner's ability to transfer title or may impact the property's value. This can include liens, mortgages, easements, or other obligations that must be settled before a property can be sold or its title can be cleared. Understanding the concept of encumbrance is crucial because it represents any burden on the property that may restrict the owner's rights or affect their financial responsibility toward the property. It is essential in real estate transactions, as potential buyers need to know about any encumbrances that may exist before purchasing a property, as these can influence their decision-making and the purchase price.

An encumbrance refers to a liability or claim that is attached to a property, which can affect the owner's ability to transfer title or may impact the property's value. This can include liens, mortgages, easements, or other obligations that must be settled before a property can be sold or its title can be cleared.

Understanding the concept of encumbrance is crucial because it represents any burden on the property that may restrict the owner's rights or affect their financial responsibility toward the property. It is essential in real estate transactions, as potential buyers need to know about any encumbrances that may exist before purchasing a property, as these can influence their decision-making and the purchase price.