An Encumbrance is a claim against a property, such as a lien or liability placed on it by the IRS or a contractor, binding real property that may lessen its value or burden, obstruct or impair the use or sale of a property.  There are two types of encumbrances:  1) those, which affect the title, such as a mortgage or mortgages, mechanics’ lien, judgments, which are placed on a property to secure a debt or obligation, and 2) those which affect the physical condition of the property, such as restrictions, encroachments and easements. Encumbrances should be noted on the deed following the property description.