Understanding Encumbrances in Real Estate. Encumbrance in real estate refers to any claim, lien or liability on a property that may limit or restrict the owner's rights to transfer or use the ...

Encumbrances and liens commonly occur in real estate; and if you fail to satisfy a debt, a creditor or the Internal Revenue Service may attach a lien or encumbrance to your property. This can ...

Types of encumbrances include leases and protective or restrictive covenants. Conduct a title search, consult a professional, and consider taking out a general warranty deed to protect your interests.

Patent broker Brad Close notes that encumbrances can have the effect of reducing a patent’s value by up to 100 percent, practically rendering a patent valueless on the market.