A property looks clean until the title report reveals a recorded easement, an unpaid contractor’s lien, and a restrictive covenant. Those items are encumbrances. An encumbrance is any claim, lien, or liability that affects title or limits use of the property.

Some encumbrances, such as mortgages and property taxes, are routine and expected. Others, such as judgment liens or unresolved boundary disputes, can delay or derail a sale. Buyers learn of them through title searches and surveys. Clearing objectionable encumbrances is often a condition of closing.

Not every encumbrance is negative. A beneficial easement or a well-crafted covenant can support value. The key is disclosure and understanding. Title insurance protects against many undiscovered encumbrances, yet known ones must still be addressed.

A clear title is rarely accidental; it is the result of identifying and resolving encumbrances.