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Encumbrances in Real Estate Defined

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Definition: A claim against, limitation on or liability against real estate is an encumbrance. Encumbrances include liens, deed restrictions, easements, encroachments and licenses.

An encumbrance can restrict the owner's ability to transfer title to the property or lessen its value. It represents some right or claim of another to a portion of the property or to the use of the property.

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