# Encumbrance

> any mortgage, charge, security, interest, lien, pledge, assignment by way of security, equity, claim, right of pre-emption, option, covenant, restriction

**Term:** Encumbrance  
**Last updated:** 2026-06-12

## Definition

any mortgage, charge, security interest, lien, pledge, assignment by way of security, equity, claim, right of pre-emption, option, covenant, restriction, reservation, lease, trust, order, decree, judgment, title defect (including retention of title claim), conflicting claim of ownership or any other encumbrance of any nature whatsoever (whether or not perfected other than liens arising by operation of law);.

## Context

### Relevant circumstances

- When a buyer needs assets warranted free of charges, liens or third-party claims
- If title to property must be cleansed of pre-emption rights or restrictions
- Where security over an asset must be released before transfer

### Relevant sectors

- Real Estate
- Finance
- Investment

## Relevant contract types

- [Service Agreement](https://www.genieai.co/en-us/template-type/service-agreement)
- [Sale Agreement](https://www.genieai.co/en-us/template-type/sale-agreement)
- [Partnership Agreement](https://www.genieai.co/en-us/template-type/partnership-agreement)

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