This entry is the final one in our 3 part series based Encroachment, Easements, & Encumbered. These are terms you may hear when purchasing or selling a property. They most often pop up when your attorney is doing an opinion of title and they directly impact the way you use and enjoy your property. While they may not render the property useless, they will certainly impact how the property is handled when it comes to others. Today we are discussing encumbered properties.

Encumbrance is anything that impedes what an owner can with the property. You may own the property and the improvements (all the buildings on the property) but if the home that is built there has been rented to a tenant, your property is encumbered by the lease. You still own the property but you have tied up part of your rights in what you do with the property with the lease. If a property is rented you can no longer just walk in anytime you want and you can’t evict the tenants as long as the lease is in place. 


Another example of encumbrance on a property is tax or mechanics lien. If you have work done on a property and fail to pay for the work, the repairman can file a lien at the courthouse. This lien would be in place until the bill is paid. This means if you try to sell the property, the lien would have to be paid before the new deed could be recorded. The same is true of a property tax lien. 

Selling an encumbered property 

Just because an encumbrance exist, doesn’t mean the property can’t be sold. It simply means that some “object” is in the way and must be resolved before the property can change hands. Encumbrances could also include zoning laws, easements, and HOA restrictions. 

Buying an encumbered property

All encumbrances impact a buyers decision. It’s always best to make everyone aware of any known issues at the beginning of the transaction.

If you likes these videos I hope you will pass them along to your family and friends. There’s more content on my blog at chriswhitehurst.com , my Facebook page and YouTube channel. If you are finding value in the entries, I invite you to subscribe and like the pages, so you can stay plugged in on all things real estate. Until next time…….

Welcome Home 

Chris Whitehurst 

Rose and Womble Real Estate


252 312 2263