What does "encumbrance" mean in relation to a property title?

The term "encumbrance" in relation to a property title specifically refers to a claim or liability that is attached to the property, which may affect the owner's ability to transfer ownership. This includes liens, mortgages, and other legal claims that could hinder or limit the use of the property. When a property has an encumbrance, it generally means that there are financial obligations or restrictions that would need to be cleared or considered before the property can be sold or transferred.

Understanding this term is essential for anyone involved in real estate, as encumbrances can significantly impact the value of the property and the rights of the owner. They are critical factors to be assessed during title searches and property transactions to ensure that potential buyers are aware of any financial obligations or legal claims they would assume with the purchase.

The other options relate to property rights or concepts but do not accurately convey the meaning of "encumbrance." For instance, a right to use the property for a specific purpose denotes an easement, while a document proving ownership is a deed. Lastly, a warranty covering structural defects pertains to guarantees regarding the physical condition of the property. Therefore, "B" correctly encapsulates the core concept of encumbrance in property titles.