An encumbrance is any claim, lien or restriction attached to a property that affects its title or use, including a mortgage, an easement, a lien or a deed restriction. Not every encumbrance stops a sale, an easement for a utility line typically does not, but a title search is how they all get identified before closing.
Why it matters
An encumbrance found late in the process can change what a buyer is willing to pay or whether they will close at all.
General information, not legal or tax advice.