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a mortgage or other claim on property or assets.
The encumbrance is the legal liability on real property that does not prohibit passing title to the property but diminishes its value.
An encumbrance is a claim agents a property by a party that is not the owner. An encumbrance can impact that transferability of the property an restrict it’s free use until the encumbrance is lifted.
The most common types of encumbrance applied to real estate these include mortgages easements an property tax lines.
Every purchase order is entered as an encumbrance on company fund thereby reserving the use of those fund for a specific purpose
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