In real estate, 'encumber' refers to the act of burdening a property with a liability, debt, or legal claim, which can limit the owner's ability to transfer title or decrease the property's market value.
A good and marketable title refers to a title free from significant defects, claims, or liens, ensuring the property can be freely transferred without legal complications.
"In Rem" is a legal term derived from Latin which means “against the thing.” It refers to proceedings directed against the property itself rather than against a specific person. For example, In Rem actions are typically used in scenarios involving property seizure due to non-payment of taxes.
An incumbrance (or encumbrance) is a claim, lien, charge, or liability attached to and binding real property. These claims often affect the property's use, transferability, or value.
A Satisfaction of Mortgage, also known as a Satisfaction Piece, is a document provided by a lender to confirm that a mortgage has been fully repaid by the borrower, thereby releasing the property from the lien of the mortgage.
A subordination clause is a legal arrangement that establishes the order of priority for multiple lenders' claims on a property in case of default.
Title defect refers to any issue or claimant that challenges the legal ownership of a property, preventing the owner from presenting a clear or marketable title. These defects can arise due to various reasons such as missing signatures on the deed, current liens, or interruptions in the title records.
An unencumbered property is a real estate asset with a free and clear title, meaning there are no claims, liens, or restrictions by any third party. It signifies full ownership by the titleholder without any existing obligations such as mortgages, vendor liens, mechanic’s liens, or tax liens.
