Real Property
Any claim, lien, charge, or liability attached to a property that affects its use or transfer.
An encumbrance is anything that burdens the title or use of a property. Financial encumbrances include mortgages, tax liens, and mechanic's liens. Non-financial encumbrances include easements, deed restrictions, and encroachments. Encumbrances do not prevent transfer of title, but they transfer with the property unless cleared before closing.
Exam Tip
Liens are financial encumbrances; easements and deed restrictions are non-financial. Both are discovered through a title search.
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Real Property
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NY Real Estate Real Property
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