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An owner can hold property that is also subject to

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someone else's claim or right.

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Encumbrance is the broader category for burdens or claims affecting

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property.

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Watch the category divide.

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A lien can secure a debt.

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An easement can give another person a limited use right.

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Both can affect the owner's property, but they do different

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jobs.

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A driveway easement is our example of a nonfinancial encumbrance.

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It allows the permitted use without automatically transferring ownership of

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the strip.

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Identify the actual right or restriction instead of assuming every

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encumbrance is a debt.

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Quick check:

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is every encumbrance a lien?

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No.

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A lien is one type of encumbrance.

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An easement is another.