Also known as: incumbrances · encumbrance · encumbrances · lien
Written by attorneys · grounded in primary & secondary sources — see below
A legal claim or lien burdening property that may render title unmarketable or affect its transfer. The presence of such a claim prevents a seller from conveying clear title unless cured or waived.
Ira Irving contracted to sell land to Isla Ireland. A recorded mechanic's lien from a prior contractor remained unsatisfied at closing. Isla refused to proceed because the lien created reasonable doubt about marketability.
Ivan Ivanov as trustee mortgaged trust real estate to secure a personal loan. Beneficiary Idina Iverson sought to void the encumbrance because it arose from a conflict between fiduciary and personal interests.
Integrity Partners held a fee simple subject to condition. A judgment creditor obtained a lien on the present interest. The creditor could execute only against the transferable estate that the debtor held when the lien attached.
Select any source to read its text and confirm it supports the definition.
Ironclad Industries supplied seed to a farm under a credit agreement creating an agricultural lien. The supplier perfected the lien by satisfying all statutory filing requirements before the lien became effective.
Israel Irving died owning farmland subject to an existing mortgage. The appointed personal representative listed the mortgage amount and type on the inventory filed within three months of appointment.
Insight Consulting obtained a judgment against a partner. The court entered a charging order against the partner's transferable interest. The order operated as a lien requiring the partnership to pay future distributions to the judgment creditor.
Title becomes unmarketable when a recorded encumbrance creates reasonable doubt that a prudent purchaser would accept. The buyer may then refuse to close or seek rescission unless the contract provides otherwise or the defect is waived.
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A charging order constitutes a lien on a partner's transferable interest. It requires the partnership to pay distributions that would otherwise go to the judgment debtor directly to the creditor until the judgment is satisfied.
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Yes. Within three months after appointment the representative must prepare an inventory that indicates the type and amount of any encumbrance on each listed item of the decedent's property.
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…compensation. See also Armstrong v. United States , 364 U. S. 40 (1960) (Government’s complete destruction of a materialman’s lien in certain property held a “taking”); Hudson Water Co. v. McCarter , 209 U. S. 349, 355 (1908) (if height restriction makes property wholly useless “the rights of property . . . prevail…