What can an encumbrance include?

An encumbrance encompasses various interests or claims against a property that can affect its value or use. The correct choice here includes liens, easements, and restrictions, all of which are types of encumbrances.

Liens are financial claims against a property, often related to obligations such as mortgages or unpaid taxes. They can affect the owner’s ability to sell or refinance the property until the obligation is resolved. Easements grant specific rights to another entity or individual to use a portion of the property for a defined purpose, such as utility companies accessing lines or neighbors having a right of way. Restrictions are usually conditions imposed on the property, often found in zoning laws or homeowners' covenants, which can limit how the property may be used.

Understanding encumbrances is crucial in real estate as they can significantly impact ownership rights and property transactions. By recognizing that they encompass various forms including financial and legal interests, one can better navigate property ownership and transfer responsibilities.