What is an encumbrance?

An encumbrance is an issue related to a piece of property that can limit the owner’s ability to possess or transfer the property. An encumbrance can be a lien placed on the property by a creditor, or a recorded claim against the property that needs to be paid before the sale can be completed. In Alaska, there are a few different types of encumbrances that can affect property owners. The most common encumbrance is a mortgage lien, which is placed on the property when it is purchased and is usually paid off when the mortgage is settled. Other encumbrances include tax liens, easements, mineral rights, safety and health regulations, and environmental restrictions. All of these encumbrances can affect the sale of property in Alaska, and must be taken into account when transferring or selling property. If an encumbrance is not addressed, the owner may have difficulty selling the property or receiving the full payment for it.

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