What does the term "encumbrance" generally refer to?

The term "encumbrance" generally refers to a restriction on property use or ownership, which often includes liens, easements, or covenants. These restrictions can affect how the property owner can use their property, potentially limiting activities such as development, renovation, or sale. For instance, if a property has a lien against it due to unpaid debts, this encumbrance can prevent the owner from selling the property until those debts are settled. Additionally, easements allow others to use a portion of the property for specific purposes, which could limit the owner's ability to utilize that area freely. Understanding encumbrances is essential for property owners and potential buyers, as they can significantly impact property value and usability.