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Property Encumbrance Questions

What is property encumbrance?

Property encumbrance is where there is a legal claim against another individual. Encumbrance normally affects the ability to transfer property and can even limit the free use of the property until the encumbrance has been taken off. In many common cases where encumbrance has taken place is in real estate where unpaid mortgage or unpaid property taxes have not been taken care of. With that being said encumbrance can also happen to accounting that refers to limited funds that are inside the account and these funds are used for only certain responsibilities.

In the state of California is leasing of owned property the same as having an encumbrance on that property?

A lease can in fact hold up the transfer process of property by showing that the owner cannot transfer the land while the lease is in place. If it happens to do this, then the lease will be considered an encumbrance. With that being said an agreement can be the exception and not the rule. In almost every case, a lease will not put a hold on the transfer of real property. Normally, a lease is not an encumbrance on real property.

If there is a lien or other encumbrance against property is it true that the lien will ban the sale of the property but instead that receiving money from the purchase where the seller will have to remove the lien or encumbrance in order to have a clear title to the buyer?

Often times when someone agrees to sale the real property, a condition that states that the seller will have a clear title to the buyer when closing. A lien or other encumbrance does stop the seller from having a clear title when the closing date approaches since there is normally a time delay in getting the lien taken off before the clear title can be received. The reason for this is because the possible for other time delays and problems to occur, encumbered property will normally not be considered as valuable as an unencumbered property, and this will have a beginning for the buyer to back out of the contract if this type of agreement requires that the title is received before the closing date. With this all being said, the encumbrance will not stop the seller from selling the property, but many buyers will not be able to buy an encumbered property unless the individual were to buy it at a major discount.

In the state of Nevada if an encumbrance on property passes an heir will the encumbrance also be the new title owners responsibility?

In this case when an individual has received property along with the title anything within the title is not the new owner’s responsibility. An encumbrance on a title or deed comes along with the land.

If someone had bought a house, and the house is condemned is it true that a condemned house is an encumbrance house?

An encumbrance is considered a lien or imperfection on the title of the property, not the property itself. With that being said an encumbrance can be a mortgage against the property. A condemned house will not be subjected as an encumbrance on the house.

Often times when purchasing property, an individual will run into issues where the title will state that there is an encumbrance against the land or property, when this comes up the individual believes that there is something wrong with that property. In many cases, that is not the case. When dealing with an encumbrance property or land encumbrance the thousands of Legal Experts online can provide legal answers to the many complex questions dealing with property encumbrance.
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