ENCUMBRANCES Meaning and
Definition
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Encumbrances are legal or financial burdens or limitations imposed on a property, often referred to as liens or claims against the property. These encumbrances can affect ownership rights and restrict the ability to sell or transfer the property. They are typically disclosed in real estate transactions to inform potential buyers about any existing claims or obligations tied to the property.
There are several types of encumbrances. One common example is a mortgage, which is a loan secured by the property itself. The mortgage is considered an encumbrance because it grants the lender certain rights over the property until the loan is fully repaid.
Other encumbrances may include unpaid taxes, mechanics' liens, easements, or judgments. Unpaid taxes can result in tax liens, where the government has a claim on the property until the taxes are settled. Mechanics' liens can be placed on the property by contractors who have not been paid for work done on the property. Easements can grant others certain rights to use the property, such as access to a neighboring property, and can limit the full control and ownership of the owner. Judgments can arise from legal disputes or unpaid debts and can lead to a claim against the property as a form of repayment.
Overall, encumbrances are important considerations in real estate transactions, as they can impact the value, marketability, and transferability of a property. Potential buyers should thoroughly investigate and understand any existing encumbrances to assess their potential impact on the property's ownership and use.
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Etymology of ENCUMBRANCES
The word "encumbrances" has its origins in the Middle English term "encumbraunce", which dates back to the 14th century. It is derived from the Old French word "encumbrer", meaning "to block or hinder". The Old French term is further derived from the Latin word "incumbro", which means "to lie upon" or "to place a burden on". Therefore, "encumbrances" originally referred to burdensome or obstructive things that weigh on or impede progress.
Similar spelling word for ENCUMBRANCES
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