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The term encumbrance is usually new to the beginner in real estate.
An ENCUMBRANCE is the right or interest in real property other than an ownership or tenancy interest. It is a burden to the property that limits its use and may lessen its value.
The two main types of ENCUMBRANCES are liens, or money type of encumbrance, and liens, or physical use type (non-money) encumbrance.
Using the information in the textbook, or research if required, list and explain each of the money and non-money type of liens. Also give an example of each type, and how it would possibly affect the value of the property attached.
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