Which of the following describes an encumbrance?

An encumbrance is best defined as a non-possessory interest or claim to property. This means that while an encumbrance does not convey ownership rights, it may impose limitations or obligations associated with the property. Common examples of encumbrances include liens, easements, and covenants, which can affect the owner's use of the property or its market value.

Understanding that an encumbrance does not grant ownership is crucial. Instead, it signifies that someone else has a legitimate claim or interest in the property that may affect the owner's rights. For instance, a mortgage is a type of encumbrance where the lender has a claim on the property until the borrower pays off the loan. Such interests can influence the rights of the owner and are pertinent to buyers during transactions, as they need to consider how these claims may impact their use and control of the property.

Other choices introduce concepts that do not adequately capture the definition of an encumbrance. For example, claiming that it grants ownership rights to the buyer misrepresents the fundamental nature of an encumbrance. Likewise, a complete transfer of property rights would indicate a conveyance, rather than an encumbrance. Finally, while having a legal obligation to pay property taxes may represent