What is an encumbrance?

An encumbrance is a type of claim against a piece of property in Massachusetts that may reduce the value of the property or limit its use. Encumbrances can include mortgages, unpaid taxes, court judgments, liens, and even easements. Easements are rights given to another person or entity to use the property in a certain manner. For example, an easement may grant access to a public road or provide rights to a neighbor for use of a shared driveway. All of these encumbrances must be paid off or removed in order for a buyer to take full ownership of a property. In addition, many states require the disclosure of all encumbrances on a piece of property prior to its sale so that buyers can be made aware of these claims before they purchase. Encumbrances can also be beneficial in certain situations, such as providing income when a property is leased or mortgaged.

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