What is Encumbrance?
An encumbrance is anything that affects or limits the use or transfer of a property, such as a lien, easement, or deed restriction. It doesn’t necessarily prevent a sale, but it can affect value or how the property can be used. Encumbrances show up on the title report.
Example: A recorded easement allowing a neighbor to cross the driveway is an encumbrance the buyer learns about from the title report.