encumbrance[en kum′brəns, in-]
A truck with an encumbrance of hay.
- An obstacle that prevents you from accomplishing a desired aim is an example of an encumbrance.
- A mortgage that is attached to your house is an example of an encumbrance on the property.
The definition of an encumbrance is a burden or hindrance, or a claim attached to a piece of property or other asset by a lender until the loan is paid in full.
- something that encumbers; hindrance; obstruction; burden
- Rare a dependent, esp. a child
- Law a lien, charge, or claim attached to real property, as a mortgage
Origin of encumbranceMiddle English and amp; Old French encombraunce
- One that encumbers; a burden or impediment.
- A lien or claim on property that diminishes its value or affects transfer of ownership but does not prevent such transfer.
From Old French encombrance, from encombrer.
encumbrance - Investment & Finance Definition
A lien, charge, or claim that is attached to real property. Properties with mortgages are encumbered.
encumbrance - Legal Definition
A financial obligation, such as a mortgage, that is attached to or burdens a property right and is transferred with that right.