In a Sale
What This Means When the House Is Being Sold
Estate properties tend to carry more encumbrances than average, simply because nobody has been actively managing them. A reverse mortgage, an unrecorded easement a neighbor has used for decades, a tax lien from a year the bills were not opened, these surface in the title search and each needs its own resolution before closing.
Some encumbrances are routine and expected, like an ordinary mortgage that gets paid off through escrow. Others require real work to clear, and identifying them early through a preliminary title report avoids finding out mid-escrow that closing has to move.
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Not to Be Confused With
- This TermEncumbrance
- Often Mistaken ForLien
- Often Mistaken ForCloud on Title
- Often Mistaken ForChain of Title
What Tells Them Apart
A lien is a specific monetary claim against the property. Encumbrance is the broader category, including liens but also easements and other non monetary interests. A cloud on title is any encumbrance or defect serious enough to concern a title underwriter. Chain of title is the ownership history the search runs against to find them.
Questions
Questions People Ask
What encumbrances are common on estate property?
Mortgages, tax liens, easements neighbors have used informally, and sometimes a reverse mortgage are typical. Estate property often has more of these than an actively managed home simply because nobody has been monitoring it closely. A title search identifies what specifically applies to a given property.