Question

An "encumbrance" is:

Transfer of title from one owner to another

Transfer of ownership without any guarantees or warranties

Cancellation of a contract

A claim against a property that can affect the ability to transfer title

Answer 1

An encumbrance is a claim against a property, like a lien, mortgage, easement, or restrictive covenant, that may restrict the owner's ability to freely transfer title and affect how the property can be used.

Step-by-step explanation:

An "encumbrance" refers to a claim against a property that may limit the owner's ability to transfer title or otherwise affect the ownership and use of the property. This can take the form of a mortgage, lien, easement, or restrictive covenant.

For instance, restrictive covenants are agreements placed on the property by a previous owner or neighborhood association that restrict how the property can be used. This might include rules about the minimum size of structures, the distance buildings must be set back from the property line, or other aesthetic guidelines intended to maintain a certain look or feel for the neighborhood.

Owners who wish to enter into contracts regarding their property need to ensure they have clear title, not burdened by encumbrances that could limit their rights.