Property Ownership
When a NH property owner 'encumbers' their property, they are:
AImproving it with new construction
BPlacing a claim, lien, or restriction on the title that limits the owner's freedom to convey clear title✓ Correct
CRe-assessing the property for tax purposes
DAdding the property to a conservation trust
Explanation
An encumbrance is anything that burdens title or limits the owner's rights — including mortgages, liens, easements, deed restrictions, and encroachments. Encumbrances do not prevent transfer but may affect value or marketability.
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Key Terms to Know
Encumbrance
Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
EasementA non-possessory right to use another person's land for a specific purpose.
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