[en-kuhm-bruh
ns] 
| 1. | something that encumbers; something burdensome, useless, or superfluous; burden; hindrance: Poverty was a lifelong encumbrance. |
| 2. | a dependent person, esp. a child. |
| 3. | Law. a burden or claim on property, as a mortgage. |
| en·cum·brance (ěn-kŭm'brəns) n.
|
| Main Entry: | encumbrance1 |
| Part of Speech: | n |
| Definition: | a state of being encumbered; an onerous situation |
| Etymology: | Old French en- + combre 'dam, weir' |
| Main Entry: | encumbrance2 |
| Part of Speech: | n |
| Definition: | a burden, impediment |
| Etymology: | Old French en- + combre 'dam, weir' |
| Main Entry: | encumbrance3 |
| Part of Speech: | n |
| Definition: | a lien, mortgage, or other financial claim against a property |
| Etymology: | Old French en- + combre 'dam, weir' |
Encumbrance
A claim against a property by another party. Encumbrance usually impacts the transferability of the property.
Investopedia Commentary
Also known as a lien.
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See also: Lien, Property, Real Estate
encumbrance
A liability on real property. For example, a mortgage encumbers title to real estate because the lender has an interest in the property. Compare unencumbered.
A commitment within an organization to use funds for a specific purpose. Thus, a college may encumber funds for later payment to cover expenses associated with a faculty member's trip to recruit new professors.