What is an example of an encumbrance?

An encumbrance refers to a claim, lien, charge, or liability attached to a property that can affect the owner's rights or the property’s value. An easement in gross is one such encumbrance that allows a party to use the property for a specific purpose, even if they do not own any portion of the land. This is typically seen in cases where utilities or public access are involved, enabling those entities to access or establish services across private property.

While a mortgage, a deed restriction, and other charges are also forms of encumbrances, the particular focus here is on the nature of easements and how they differ from other encumbrances like mortgages, which are financial claims, or deed restrictions, which limit the use of property. Therefore, identifying an easement in gross as an encumbrance highlights the diverse ways in which property rights can be affected by different types of encumbrances, encompassing both physical uses and legal limitations on property.