Encumbrance

Any third-party claim, restriction or interest registered against the property title.

An encumbrance is any registered third-party interest, claim or restriction on a property title — the broad umbrella term covering mortgages, caveats, easements, covenants, leases and statutory charges. Conveyancers run title searches to identify every encumbrance before settlement. Some encumbrances (like the seller's mortgage) are discharged at settlement; others (easements, covenants) remain on title indefinitely.