what does incumbrance mean: Incumbrance Definition & Meaning


Encumbrances can be classified in several ways. They may be financial or non-financial. Alternatively, they may be divided into those that affect title or those that affect the use or physical condition of the encumbered property. Encumbrances include security interests, liens, servitudes, leases, restrictions, encroachments, and air and subsurface rights. Also, those considered as potentially making the title defeasible are encumbrances, e.g. charging orders, building orders and structure alteration.


Not all forms of encumbrance are financial, easements being an example of non-financial encumbrances. An encumbrance can also apply to personal – as opposed to real – property. … The most common types of encumbrance apply to real estate; these include mortgages, easements, and property tax liens. An encumbrance is a right to, interest in, or legal liability on real property that does not prohibit passing title to the property but that diminishes its value.

ENCUMBRANCE. A burden or charge upon an estate or property, so that it cannot be disposed of without being subject to it. A mortgage, a lien for taxes, are examples of encumbrances. Conveyance is the act of transferring ownership of a piece of property from one party to another. Read about real estate and mineral rights conveyances. A lien is a type of security interest, an encumbrance that affects the title to a property. It gives a creditor the right to seize the property as collateral for an unmet obligation, usually an unpaid debt.

Lenders will use the home as collateral, but it won’t be affected if the mortgage payments are made on time. No one else having any rights over something. When property is owned by someone and nobody else has any rights over it, it is owned free of encumbrances. Most house purchases require the property to be sold free of encumbrances. Encumbrances are open commitments to a transaction.

While I was concerned about my daughter’s cold, I did not think it would be a hindrance to her school attendance. It was not natural affection; I did not love you then, and I knew that you would be a serious encumbrance to me. Find similar words to incumbrance using the buttons below. He certainly wanted to be free from distractions and encumbrances when he was working, but nothing in his actions looks like ‘bonding’ with a particular place. While linguists might delight in the usefulness and elegance of the concept, for most learners it would be an unnecessary encumbrance.

Love words?

Separating funds from the free balance of a budget in order to reserve the funds for the current fiscal year for a particular purpose. Typically, a pre-encumbrance is initiated by a written requisition. Contractual terms that are specific to each lot offered.


Let’s learn more about what an encumbrance is and answer any questions you may have about this type of restriction. An example of Intellectual property encumbrance is “encumbered code”, software that cannot be freely distributed due to intellectual property rights. A covenant can run with the land, meaning the covenant will exist regardless the transference of the land. The subsequent landowner will continue being burdened or benefited by the covenant. The encumbrance certificate can be obtained by the property owner at the local registrar’s office.

What is the plural of hindrance?

Paying down debt remains the best hedge against financial encumbrance. She considered the past an irrelevant encumbrance. You will need to bring it to the Registry of Deeds branch where the loan was listed and your CR was encumbered, to have the encumbrance canceled or removed. The RD will then issue you a form of cancellation on the encumbrance of your CR.

  • They may be financial or non-financial .
  • On this page, you can find what is Encumbrance.
  • A negative easement restricts the title-holder, for example, by preventing them from building a structure that would block a neighbor’s light.
  • The encumbrance certificate can be obtained by the property owner at the local registrar’s office.

These limits are brought up by a third party and are placed on the property itself, not the owner. As you now know, it’s common for nearly every property to have at least one encumbrance on it. There are financial and nonfinancial claims, which can include easements, liens, leases and restrictive covenants. Encumbrances can cover a variety of financial and non-financial claims on a property. The most common types of encumbrances are legal encumbrances, financial encumbrances, easements, restrictive covenants and leases. Let’s talk more about each of these encumbrances and explain what their implications may be for buyers.

What is an M&M lien?

Covenants , restrictions and easements can all run with the land and bind all future owners of the subject real property. … Although a license to use land is also a nonpossessory interest, it is not an encumbrance, since it does not transfer with the land. It is settled law that California is a “lien” and not a “legal title” theory state when imposing encumbrances/liens against the title of real property. California has a 150-year history of development and evolution in the way its courts have applied legal principles to mortgages and deeds of trust. A lien is a legal right or interest of a creditor in the property of another, usually lasting until a debt or duty is satisfied. An encumbrance is a claim or liability attached to property.

What is the Meaning of Encumbrance? An encumbrance will affect the property’s transferability and limit its free use until the burden is lifted. … If the land is encumbered, it’s not completely yours to do with as you will. There are a few ways for home buyers to determine whether the property they’re looking at has encumbrances attached to it. A title search is the first step. If there are any documented encumbrances on a property, they should come up in the title search.


Learn the words you need to communicate with confidence. Other skeptical reactions include preferences for the convenience of pills over the encumbrance of headsets, or fears that the widespread prescribing of V.R. Will mean losing access to painkillers.

An example of democracy at work is in the United States, where people have political freedom and equality. What-does.net is your comprehensive online definition dictionary. If you are not sure how to define Encumbrance, our website can provide you with the appropriate definition. On this page, you can find what is Encumbrance.

How does an encumbrance affect expenses?

Chancery, 4 what does incumbrance mean A 10, 4 I.

It’s a right to use the land in a particular way that can’t be blocked by a new owner. An easement gives a person or an organization the right to use another owner’s property for a limited specific purpose. For example, utility workers could have an easement to gain access to a homeowner’s property to service their equipment. In addition, a landlocked neighbor may have an easement over a homeowner’s property to access the road. Easements run with the property, so a new owner can’t prevent the easement beneficiary from using it. A mortgage lien allows homeowners to afford a house over time instead of having to pay for it in full upfront.

You can https://1investing.in/ more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Encumbrance accounting sets aside specific assets to pay anticipated liabilities. For example, a company may reserve a sum of cash to settle up its accounts payable. The presence of an encumbrance can give the illusion that there are more available funds inside an account than what is actually free for use. The money that has been set aside cannot be used for any other expenditures or transactions.

Other Word Forms of Incumbrance

I confirm that no charge, hire-purchase agreement or other incumbrance affects the property. A land trust takes ownership or authority over a property at the request of its owner, often for tax and privacy purposes but with possible downsides. Encroachment is when someone who doesn’t own the property somehow interferes with their neighbor’s property. This could be anything from building a fence that crosses over the property line or even a structural addition that extends beyond the legal property boundaries. Depending on the situation, encroachment can either be intentional or harmless but it can lead to liability issues, property damage and even problems at the time of sale. Whether you own a house or are looking to buy property, it’s important to know there will likely be some limits on what you as the owner can do with the property.

An encumbrance is a claim made against a property by someone other than the current titleholder. The map shown above gives the frequency of use of the term «incumbrance» in the different countries. Here are all the possible meanings and translations of the word incumbrance. Close your vocabulary gaps with personalized learning that focuses on teaching the words you need to know. An encumbrance can affect the transferability of a property and restrict its free use until it is lifted.

They were buying land without encumbrances for between $100 and $500 an acre. When you’re walking 30 miles a day, the fewer encumbrances the better. Midterm elections in non-presidential years usually favor the party out of power in the White House, and DeSantis and Rubio have that advantage on top of their incumbency. You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.


He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. – “Andy Grant’s Pluck”, Horatio Alger. If you are not sure how to define Incumbrance, our website can provide you with the appropriate definition.

If the borrower cannot repay the mortgage, the lender may foreclose, seizing the house as collateral and evicting the inhabitants. An encumbrance is a limit on how an owner can use real estate. This claim is brought up by a party who is not the owner and restricts what an owner can do with the property. An encumbrance can create a cloud on the title of a real property. This type of limit can also allow the property buyer to back out of the sale and possibly seek damages in some jurisdictions. A right or restriction that affects all current and future owners of real property and transfers with title to the property.