Encumbrance
Any claim, lien, easement, or restriction that affects the title to a property. In an HOA setting, common encumbrances include assessment liens, recorded CC&Rs, easements for utilities or access, and deed restrictions. Encumbrances do not prevent ownership transfer but may affect the property value or limit how it can be used.
Related Terms
Frequently Asked Questions
What encumbrances affect my property in an HOA?
Common encumbrances in HOA communities include the recorded CC&Rs (which restrict property use), assessment liens (if assessments are unpaid), utility easements, and any deed restrictions. These appear on the preliminary title report when a property is sold. Encumbrances do not prevent ownership transfer but may affect property value or how you can use the property.