An Encumbrance is any legal claim, liability, charge, restriction, or interest held by a third party over a property that may affect the owner's rights to sell, transfer, or use the property freely.

In simple terms, an encumbrance indicates that the property may not be completely free from financial or legal obligations.

Why is Checking Encumbrance Important?

Before purchasing any property, it is essential to verify whether the property is free from encumbrances because:

✔ Confirms clear ownership

✔ Reveals outstanding loans or mortgages

✔ Identifies legal disputes

✔ Protects against future claims

✔ Ensures smooth property transfer

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