What are the two main categories of encumbrances?

The two main categories of encumbrances are indeed liens and easements. Liens represent a financial claim against a property, providing security for debts or obligations. Common examples include mortgage liens and tax liens, which can affect the property's ownership and transferability.

Easements, on the other hand, are non-financial interests that grant someone the right to use or access a portion of another person's property for a specific purpose, such as utility access or right-of-way. Unlike liens, easements do not convey ownership but rather an allowance for use.

Understanding these categories is critical, as they directly influence property rights. Liens can lead to legal action if the underlying debt is not settled, while easements can determine how a property can be used or accessed by others. These encumbrances are fundamental concepts in real property law and can significantly impact real estate transactions.