LESLIE MONACO REAL ESTATE

Real Estate Term of the Day: Encumbrance

ENCUMBRANCE – any right to or interest in land that affects its value (Barron’s Dictionary of Real Estate Terms)

A quick title search can show recorded encumbrances which can include:

• Outstanding mortgage loans
• Unpaid taxes
• HOA lien
• EASEMENTS
• DEED RESTRICTIONS – a clause in a deed that limits the use of land (Barron’s Dictionary of Real Estate Terms)
• LIEN – a charge against property making it security for the payment of a debt (Barron’s Dictionary of Real Estate Terms)
• MECHANIC’S LIEN – a lien given by law upon a building or other improvement upon land as security for the payment for labor done and materials furnished for improvement (Barron’s Dictionary of Real Estate Terms)