Encumbrance

The MBE rarely tests “encumbrance” as a vocabulary word; it hides inside marketable-title and warranty-deed fact patterns. The classic tell is a buyer who discovers an easement, lien, or zoning-violating encroachment and wants out before closing — the answer turns on whether an outstanding encumbrance renders title unmarketable, letting the buyer rescind. Watch the trap: zoning restrictions alone do not encumber title, but an existing violation of a zoning ordinance does render title unmarketable. Easements split the rule: a visible, beneficial easement the buyer knew of (a utility line, a road) usually does not render title unmarketable, while a hidden or burdensome one does.

Distinguish the related terms. A mortgage is one species of encumbrance (a lien), but foreclosure priority turns on recording, not on labeling it an encumbrance. A covenant burdens use; whether it “runs” depends on touch-and-concern, intent, and notice — separate from whether it clouds marketable title. Memory hook: an encumbrance is anything that “weighs down” the title without divesting ownership.