100 Painters Mill Road Suite 200
Owings Mills Maryland 21117
Residential Title & Escrow Company Commercial Settlement Services, LLC


Everything You Need to Know About Property Encumbrances

When it comes time to purchase a property, there are many red flags to watch out for. One of the most important considerations is property encumbrances. A property encumberance refers to the legal rights to a property. While an encumbrance won’t prevent an owner from transferring the title of their property, it can have a significant impact on that property’s value. Learn more about property encumbrances, below.


Property encumbrances can lead to unexpected headaches.

Everything You Need to Know About Property Encumbrances

There are a number of different types of property encumbrances which can each affect your title transfer in different ways. They include:


A lien is placed on a property when debts are unpaid A mortgage is a common type of lien as it allows the bank to repossess the property if timely payments are not made. There are a number of different types of liens and when they are failed to be repaid, the ultimate result is foreclosure.


Encroachments refer to properties that crosses boundary lines into neighboring properties. While they are generally accidental, they can still cause issues during the title transfer process. A common example of an encroachment is a fence that is accidentally constructed beyond a property’s boundaries.


Easements allow the use of a property by another entity that does not possess ownership of the property. A common example occurs when a utility company builds power lines on privately owned land. This is legal thanks to easements.

Deed restrictions

A deed restriction delineates how property owners are allowed to do with their property. They are most commonly found on newly constructed homes but many historical homes stipulate that they must remain historic. Other homes may not be allowed to install sattelites on their homes due to deed restrictions.

The best way to prevent the headaches that come with property encumbrances is to work with an experienced and trustworthy title company.

Residential Title & Escrow

At Residential Title & Escrow, we bring peace of mind to the settlement table. If you are searching for a title company to help you through the closing process, contact us today! You can also fill out our simple online title request form and one of our knowledgeable representatives will get in touch with you promptly. Be sure to follow us on FacebookTwitterPinterest, andGoogle+ to stay up to date on news, and upcoming events as well as staff and client spotlights!

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Residential Title & Escrow Company
100 Painters Mill Road Suite 200 Owings Mills, Maryland 21117
Phone: 410-653-3400