Definition of "Incumbrance"

Steven Asadoorian, Affiliate Broker real estate agent
Steven Asadoorian, Affiliate Broker, Real Estate Agent Keller Williams Realty

A right or interest in property held by a third party, which often limits the use and diminishes the value of the property, but usually does not prevent the transferring of title. The more common forms of incumbrance are:

  1. Taxes, water rents and assessments for local improvements that have become liens upon the property to which a contract or conveyance relates.
  2. Mortgages.
  3. Recorded judgments.
  4. Property lease. Lis pendens giving notice that an action or proceeding is pending in the courts affecting the title to the property.
  5. Mechanics' liens for work or labor done or material furnished for use on the subject property.
  6. Building or other structural encroachments on the property.
  7. Easements.
  8. Restrictive covenants.

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