Also known as: encumbrances on title · encumbrance · title encumbrance
Written by attorneys · grounded in primary & secondary sources — see below
A claim or interest in real property, other than an ownership interest, that burdens or affects the title. The term encompasses mortgages, liens, easements, and similar rights that may impair marketability or require disclosure in conveyances and estate administrations.
Evelyn Ellison, trustee of a family trust holding several parcels, granted a mortgage on trust land to secure a personal loan from her own bank. Beneficiary Enzo Eastwood discovered the transaction and sought to void it. The court treated the mortgage as an encumbrance created through a conflict of interest and allowed the beneficiary to rescind the transaction.
After Eugene Ellsworth died, the personal representative prepared the required inventory of estate assets. The list identified a recorded mortgage on the decedent's commercial building and stated the outstanding balance as an encumbrance. Heirs reviewing the inventory could then assess the net value of the property before distribution.
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Edgewater Capital obtained a security interest in equipment located on real property owned by Eclipse Manufacturing. When determining priority, the court applied the statutory definition and classified the recorded mortgage on the underlying land as an encumbrance distinct from any ownership interest in the fixtures.
Esther Eisenberg, serving as personal representative, sold estate real property to a corporation in which she held a substantial interest. Ezra Eastman, an heir, challenged the sale. The court held the transaction voidable because the encumbrance created by the conflict of interest had not been approved by the court or authorized in the will.
The federal government assessed taxes against one spouse who held real property with his wife as tenants by the entirety. The Court examined whether the tax lien could attach despite state law restrictions on unilateral encumbrance and concluded that the lien constituted an encumbrance on the property rights of the taxpayer spouse.
Elysium Media obtained a patent on a data-processing method used in financial services. When State Street Bank challenged validity, the court considered whether the claimed invention constituted an impermissible encumbrance on abstract ideas and ultimately upheld the patent as a practical application rather than a mere abstract claim.
An encumbrance such as a recorded easement or lien creates reasonable doubt about whether the seller can deliver clear title. A buyer may refuse to close if the encumbrance impairs marketability unless the contract permits cure or the buyer accepts insurable title instead.
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Yes. The covenant promises that title is free from all liens and burdens at conveyance. A recorded party-wall agreement or similar encumbrance breaches the covenant even if the buyer had constructive notice, because the warranty is absolute and runs with the land.
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Under the modern approach, a specific devisee takes the property subject to any existing mortgage or lien unless the will expressly directs exoneration of that particular debt from other estate assets. A general direction to pay just debts is insufficient to shift the burden.
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…to sell the property with the respondent's consent and to receive half the proceeds from such a sale, the right to place an encumbrance on the property with the respondent's consent, and the right to block respondent from selling or encumbering the property unilaterally. IV We turn now to the federal question of…