In the context of encumbrances, what is an assessment?

An assessment, in the context of encumbrances, refers to a charge for property taxes. It represents the value determined by local governments or taxing authorities to calculate the amount of tax owed on a property. This amount is typically based on the estimated market value of the property and is essential for funding local services such as schools, roads, and public safety.

When an assessment is levied against a property, it becomes an encumbrance because it represents a financial obligation that the property owner must fulfill. If property taxes are not paid, it can lead to additional consequences, such as tax liens or even foreclosure. Understanding this concept is crucial for property owners, as assessments directly affect their financial responsibilities related to property ownership.