Define "encumbrance" in the context of real estate.

In the context of real estate, an encumbrance is defined as any claim, lien, charge, or liability that is attached to a property which can affect its value and usage. This definition encompasses a variety of financial and legal interests in the property, including mortgages, easements, and property tax liens. Encumbrances can limit the owner's ability to sell or refinance the property, as they may need to be resolved before a clear title can be transferred.

Understanding encumbrances is crucial for lease and title analysts, as these factors can significantly influence real estate transactions and the assessment of property value. For instance, a mortgage on a property acts as an encumbrance since the lender has a legal right to the property until the debt secured by the mortgage is repaid. Identifying and managing encumbrances is a key part of the leasing and titling process, making it essential to have a clear grasp of what constitutes an encumbrance in real estate.