A claim on property
Listen to pronunciationLegal Definition - noun. A claim or liability that is attached to property or some other right and that may lessen its value, such as a lien or mortgage; any property right that is not an ownership interest. An encumbrance cannot defeat the transfer of possession, but it remains after the property or right is transferred. - Also spelled incumbrance. Black's Law Dictionary® Eighth Edition © 2004
Recent usage - Stephen Fox, associate general counsel and director of IP at Hewlett-Packard Co., said many factors have to be taken into account in determining a patent's worth.
"You have to know if the patent covers others' work, if it is valid, if there are encumbrances," such as existing licensees, Fox said. "You can't do the valuation on a hand wave; it has to be quite rigorous." IRS Tweaks Rules for Patent Donations, Brenda Sandburg, The Recorder 01-13-2004
The judge found the affidavit submitted by Barry Gross, an executive employed by the Hong Kong investors, far more substantive.
"Gross's affidavit is persuasive that the amount received for the property was a realistic and fair figure reached after the purchaser investigated the Properties," Lowe wrote. "His affidavit explains that the Properties are subject to many legal restrictions, encumbrances, zoning regulations, affordable housing requirements, infrastructure requirements, park contribution requirements and other restrictions."
Trump's Billion-Dollar Suit Against Partners Hits a Roadblock, Mark Fass, New York Law Journal 09-20-2005
Note - "Encumbrance" has a different but similar meaning in common English. Here is its standard definition and a sample of usage with that definition from a Legal Journal.
Standard Definition - A burden, useless addition or annoyance.
Standard Usage - Part of what is fueling that staying power for some firms is a law, effective earlier this month, that opens retail opportunities to foreign investors. Expected to lead to quicker growth in China's already strong economy, the law does away with many restrictions on foreign investment.
The changes -- crafted as part of China's entrance into the World Trade Organization in 2001 but implemented only this month -- will enable wholly owned foreign retailers, wholesalers and distributors to operate with far fewer encumbrances from the Chinese government. U.S. Law Firms Look to Scale the Great Wall, Leigh Jones, The National Law Journal 06-23-2004