Definition
Unencumbered Property
Enter your email below
An unencumbered property refers to a property without any existing or prior legal claims against it in the form of liens, caveats, charges, etc.
It basically means a house that is clear of debt or claims from third parties.
Whether a property is unencumbered plays a very important role in various aspects regarding the property.
For example, when a bank is structuring a home equity loan to a borrower, or when a property being sold actually has a third party owner who don’t know of the sale.
This also means that a property that has third party claims against it would be considered as encumbered property.
When a bank which is in the process of positioning itself as the mortgagee of a property, discovering that the property is actually encumbered can often lead to outright rejection unless the claimant can be removed legally.
for the last 36 months?
Enter your email below so we can send it to you.
