Encumbrance

An interest in or right to a property by someone other than the home owner

Before you buy a home, you will receive a preliminary title report that details any encumbrances on the property.

There are two types of encumbrances:
(1) A money encumbrance, which affects a property’s ownership. Money encumbrances include any lien placed on a property, such as a mortgage, mechanic’s lien, or tax lien.

(2) A non-money encumbrance, such as an encroachment, affects how a property is used. An encroachment is when something from your neighbor’s property, like a garage or tree crosses over onto your property.