Which statement about encumbrances is true?

The statement that some encumbrances are non-financial is accurate because encumbrances can include a variety of legal claims or restrictions on property that do not necessarily involve a financial obligation. A non-financial encumbrance can be an easement, which allows someone else the right to use a portion of the property for a specific purpose, such as access to landlocked property. These types of encumbrances can affect the use and enjoyment of the property but do not create a monetary debt or claim against it.

In contrast, other statements suggest misconceptions about encumbrances. For instance, while all liens are encumbrances, not all encumbrances qualify as liens. Additionally, encumbrances do not inherently increase property value; they can sometimes decrease it by adding restrictions. Lastly, many encumbrances, particularly financial ones like mortgages or liens, affect property transfer since potential buyers will be wary of these claims or may need to assume them. Understanding the diversity of encumbrances, including non-financial ones, is important for navigating property transactions effectively.