The dictionary defines an encumbrance as a claim, lien, charge, or liability attached to and binding real property. Another defintion of encumbrance is any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title. Before you fall asleep, let's give you some examples. A lien (pronounced "lean") is a money claim against the property, like property taxes, mortgages, road assessments and judgments. Money-money-money. Remember, a lien involves moolah. All liens are forms of encumbrances, but not all encumbrances are liens. Some encumbrances do not involve money. Suppose you buy a view lot from a seller who owns the lot below you. You might insist as part of the deal that the seller give you a view easement that prohibits him from building anything that will block your view. This is an example of an encumbrance on the title of servient tenement, which is just a fancy legal term for land on which an easement exists in favor of an adjacent property. The uphill property with the view, in our example, is the dominant tenement. Notice that this encumbrance does not involve money, so it is not a lien. Let's suppose a seller signs an agreement to sell his house. The buyer shows up at the closing table with his money, and the seller refuses to sell. The buyer can file a petition for specific performance, asking the court for an order instructing the seller to perform the agreement to sell the property. In order to keep the seller from selling the home to another party, perhaps for a higher price, the buyer can file a lis pendens against the property, which is latin for "notice that a lawsuit is pending". This lis pendens of a petition for specific performance is an example of a right to land, and it is a form of encumbrance. Other encumbrances include easements, the right to use or pass over someone else's land. Leases are also a form of encumbrance. So remember, liens involve money, and all liens are forms of encumbrances; but not all encumbrances are liens. You can learn how to broker commercial mortgage loans in just nine hours using our very popular video training program. | 
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