Encumbrance
Any claim, lien, or restriction on a property that affects its title or use, such as a mortgage, easement, lien, or deed restriction.
Quick flashcard
What does Encumbrance mean on the Texas real estate exam?
Answer: Any claim, lien, or restriction on a property that affects its title or use, such as a mortgage, easement, lien, or deed restriction.
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Encumbrance definition
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.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Ownership & Title (9 of 80 National)
From definition to recall
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