Video Transcript:
What is an encumbrance and how does it affect a property title? This is Dave at TitleSearch.com. A title report or title abstract, like the one you see on the screen, will show a lot of different claims against a title. Mostly what a client is looking for is a cloud on the title or an encumbrance on the title. That can take many forms. It can take the form of a mortgage or a lien or a deed or a judgment. All of these things are typically in the title industry, it's called encumbrances. There's something which encumbers that title. It keeps it from being a free title that there's no claims against. In reality, there are claims against almost every property has a mortgage or taxes due or something owed on it. But those types of encumbrances are not bad. It's just as long as you know about them prior to purchasing one, that's the most important thing. A really good title search, a certified title abstract, will show you all those encumbrances. If you do have questions about running a title search on real estate, you can reach us at our website at title search dot com.