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Definition of encumbrance

By Elizabeth Weintraub, About.com

Definition: An encumbrance, as it pertains to real estate, means anything that burdens title to the property. An encumbrance can be a mortgage (loan), a lien (voluntary or unvoluntary) an easement or a restriction that limits the title. An encumbrance can involve money, but not always. The saying is all liens are encumbrances, but not all encumbrances are liens.

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