What Is an Encumbrance in Real Estate? 9 Things (2023) You Must Know

Encumbrances are restrictions placed on property by third parties, such as financial institutions or city governments, that limit or restrict how an owner can use their property. These encumbrances can range from liens, zoning laws, easements, and more, and can have varying effects on the market value of the property and the owner's ability to use it as a financial tool.

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