What is meant if a property is described as "encumbered"?

When a property is described as "encumbered," it means that there are claims or restrictions affecting the property, which can include mortgages, liens, easements, or other legal obligations. These encumbrances can impact the ownership, use, and transferability of the property. For instance, if there is a mortgage on the property, the lender has a claim to it until the mortgage is fully paid off. Similarly, an easement allows another party to use a portion of the property for specific purposes, which can affect what the owner can do with their property. Understanding this concept is crucial for buyers, as it helps them assess the potential risks and limitations associated with a property they may be considering for purchase or investment.