Encumbrance
Any claim, lien, easement, or restriction that limits an owner's rights or affects title. Encumbrances do not prevent transfer, but they travel with the property and can materially affect value and marketability.
Related Terms
Lien
A creditor's legal claim against property as security for a debt — mortgages, property taxes, judgments, and contractor (mechanic's) liens.
Easement
A non-possessory right to use another's land for a specific purpose — utility lines, driveways, drainage, or access.
Restrictive Covenant
A private deed or association restriction limiting how a property may be used — architectural standards, minimum sizes, use prohibitions.
Title
The legal evidence of ownership rights in real property.
More in Legal & Regulatory
View allUniform Standards of Professional Appraisal Practice (USPAP)
USPAPThe nationally recognized ethical and performance standards for the appraisal profession, established by The Appraisal Foundation.
FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act)
FIRREAThe 1989 federal law that established the modern appraisal regulatory framework, requiring state licensing of appraisers and USPAP compliance for all federally related real estate transactions..
Dodd-Frank Act (Appraisal Provisions)
The 2010 federal financial reform law that included significant appraisal provisions: appraiser independence requirements, AMC registration, customary and reasonable fee mandates, and prohibition of BPOs for origination..
Appraiser Independence
The legal requirement that appraisers must be free from improper influence, coercion, or pressure from parties with a financial interest in the transaction outcome.