Outstanding claim or lien recorded
against property or any legal right to the
use of the property by another person who is
not the owner.
Encumbrances are frequently referred to
in relation to mortgages registered against
the title to a property. However, the term
has a much broader scope including anything
that places a burden on property title
including a lien, mortgage, or other
registered interest (e.g., rights-of-way,
restrictions, and covenants). Preprinted
agreements/contracts contain standard
wordings (as illustrated), concerning the
acquisition of property free of encumbrances
except minor encumbrances or those
specifically referenced. Exact wordings vary
by provincial jurisdiction.
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