Encumbrance
Any claim, lien, or restriction on a property that affects its title or use, such as a mortgage, easement, lien, or deed restriction.
An encumbrance is anything that burdens or limits title to property. Financial encumbrances, such as mortgages and tax liens, affect the owner's equity. Non-financial encumbrances, such as easements and deed restrictions, affect how the property can be used.
A property can be sold with encumbrances, but they usually must be disclosed and can affect the marketability of the title.
On the exam
Exam trap
Tested in
Ownership & Title (8% of the exam)
From definition to recall
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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.