Encumbrance

An encumbrance is a third party's right to, interest in, or legal liability on property that does not prevent the property's owner from transferring title but may diminish its value. Encumbrances can be financial, such as liens, or non-financial, such as easements and private restrictions, and can also be divided by whether they burden title itself, as with liens and charges, or the use and physical condition of the property, as with restrictions, easements, and encroachments. The concept covers a range of interests, including security interests, servitudes such as easements and real covenants, leases, restrictions, encroachments, and rights to air space or the subsurface. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/