An encumbrance is any claim, lien, or restriction that affects title or limits the use of a property. Encumbrances do not necessarily prevent a sale, but they must be understood and disclosed.
Money encumbrances (liens)
- Lien
- A financial claim against property used as security for a debt.
- Voluntary vs. involuntary lien
- Voluntary = created by the owner (mortgage/deed of trust); involuntary = created by law (taxes, judgments).
- General vs. specific lien
- General attaches to all of a debtor's property (judgment); specific attaches to one property (mortgage, mechanic's lien).
- Mechanic's lien
- A claim by contractors or suppliers for unpaid work or materials on the property.
Non-money encumbrances
- Easement
- A right to use another's land for a specific purpose (e.g., a utility easement or shared driveway).
- Easement appurtenant
- Benefits an adjacent parcel (the dominant tenement) and burdens another (the servient tenement); runs with the land.
- Easement in gross
- Benefits a person or entity (like a utility company), not a parcel of land.
- Encroachment
- An unauthorized intrusion of an improvement (fence, building) onto a neighbor's property.
- Deed restriction / restrictive covenant
- A private limit on land use recorded in the deed or by a developer (CC&Rs).
Property tax liens generally take priority over all other liens regardless of when they were recorded. An easement appurtenant transfers automatically with the land it benefits.