An encumbrance is any registered interest, right or restriction affecting a property that limits the owner's use or ability to deal with it.
An encumbrance is any registered interest, right or restriction affecting a property that limits the owner's use or ability to deal with it.
Mortgages, easements, covenants, caveats, leases, liens, statutory land charges, and building line restrictions. Anything registered on the title that binds the owner.
Encumbrances transfer with the land. When you buy, you take the property subject to whatever is registered against it — whether or not you read it.
Some must be discharged before settlement (the vendor's mortgage). Others remain permanently (easements, covenants).
"Free of encumbrances" in a listing means free of undisclosed encumbrances, not free of all of them. Almost every property has some.
Your lawyer identifies them; you decide whether they matter. An easement that prevents building where you intended is a deal-breaker your lawyer may not know is a deal-breaker unless you told them the plan.
Last reviewed: 1 August 2026 · General information only, not legal advice.
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