Home > Fast Facts > FAST FACTS #1: Real Estate Terminology – Liens and Encumbrances

FAST FACTS #1: Real Estate Terminology – Liens and Encumbrances

ENCUMBRANCE: A claim, lien, charge or liability attached to real property.

LIEN: An encumbrance against property for money – either voluntary or involuntary.  Mortgages are liens as are court judgments for payment in consideration of work done on the property by a contractor (commonly called a Mechanic’s Lien)

All Liens are encumbrances but not all encumbrances are liens. Liens refer specifically to financial encumbrances. Deed restrictions on property use and right-of-way easements are examples of  encumbrances that are not financial.

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Rick Schwartz,   REALTOR

Homes for sale in Danbury, Bethel, Brookfield, Newtown, New Fairfield, New Milford, Ridgefield and Redding CT.

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