Any legal claim, lien, restriction, or burden attached to a property that could affect its sale or use. Includes mortgages, easements, liens, deed restrictions, and zoning issues.
An encumbrance is any claim, restriction, or burden attached to a property that might affect its value, marketability, or use. It's a catch-all term for anything that limits or restricts a property owner's full enjoyment of their land.
Common encumbrances: mortgages (the lender's lien), easements (someone else's right to use part of the land), property tax liens (when taxes are unpaid), mechanic's liens (when contractors aren't paid), judgment liens (from court rulings), HOA restrictions, deed restrictions (limits on use baked into the deed), and zoning restrictions.
The title search before closing exists to surface all encumbrances. Some have to be paid off or cleared before closing (existing mortgages, unpaid liens). Others continue with the property (easements, deed restrictions, zoning). Knowing what encumbrances you're inheriting is part of buying smart.
Example
Your title commitment shows three encumbrances on the property you're buying: the seller's $200K existing mortgage (paid off at closing), a utility easement (continues with the property), and a deed restriction prohibiting commercial use (also continues). All three are now your responsibility to know about.
Also known as
encumbrance, property burden, claim against property