An interest in or right to a property by someone other than the home owner

Before you buy a home, you'll receive a preliminary title report that details any encumbrances on the property. There are two types of encumbrances: (1) a money encumbrance, which affects a property's ownership. Money encumbrances include any lien placed on a property, such as a mortgage, mechanicÕs lien, or tax lien. (2) A non-money encumbrance, such as an encroachment, affects how a property is used. An encroachment is when something from your neighborÕs property, like a garage or tree crosses over onto your property.

See: Lien, Encroachment, Cloud on title