Final answer:
An encumbrance is a claim or liability attached to the title of property. Easements and restrictive covenants are common forms of non-governmental encumbrances that can limit property use or affect property value.
Step-by-step explanation:
Anything that burdens or affects the use of the title of the property is a(n) encumbrance. An encumbrance, in the context of property law, is any claim or liability that is attached to and is held against the title of a property. It can include easements, which are rights granted to others to use the property for specific purposes, and restrictive covenants, which are provisions within a deed that impose limitations on the use of the property. Both easements and restrictive covenants are types of non-government restrictions that are placed upon property rights, and they can potentially limit the free use or significantly diminish the value of the property.
For instance, an easement might permit public access to a private beach, hence preserving open space, whereas a restrictive covenant could dictate minimum house sizes or aesthetic guidelines within a neighborhood. It's necessary for individuals and firms to be informed of any encumbrances associated with a property they own or intend to contract with, as it may affect the value and use of the property as well as the owner's ability to enter contracts concerning the property.