An Encumbrance is anything that burdens title to the property. A right or interest in land, such as a mortgage (loan), a lien (voluntary or unvoluntary) an easement or a restriction attached to real property that limits the title, which benefits someone other then the owner.

Encumbrances can involve money, but not always. The saying in real estate is all liens are encumbrances, but not all encumbrances are liens. There are usually two types of encumbrances: liens and deed restrictions.

Liens are placed on the property to secure an obligation or debt of the property owner, such as a mortgage or mechanic's lien (ex.construction for a driveway).

Deed restrictions are limitations on how a property is to be used or the type of structures that can be placed on the lot/property. Builders and developers use deed restrictions to control and maintain the uses of the property standards during construction.