Which item is an example of an encumbrance?

• A. Taxes and assessments
• B. A transfer of title between spouses
• C. A zoning variance
• D. A missionary deed

Answer: (A)

An encumbrance is a claim or liability that attaches to real property and can limit its transfer or use. Taxes and assessments create a government lien on the property; until they’re paid, they stay with the land and can affect title and closing. The other items describe transfers or permissions rather than ongoing claims against the property: transferring title between spouses is a conveyance, a zoning variance is a regulatory exception granted to use the land, and a missionary deed is another type of deed transferring title. None of these impose a continuing burden on the property like a tax lien does. So taxes and assessments are the example of an encumbrance.