Encumbrances

Encumbrances

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Encumbrances

Encumbrances definition:  Property held as collateral for a loan cannot be freely given until debts are paid. Encumbered property is common among financial assets and real estate property. Before assets can be transferred, encumbrances (debts) must be fully paid. Property with restrictions on the title, such as conservation easements, is also said to be encumbered.

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