Which definitions involve "encumbrances" in real estate?

The definition that involves "encumbrances" in real estate pertains to claims or liabilities against a property that may affect the owner's ability to transfer title. Encumbrances can include mortgages, liens, easements, and other legal rights held by third parties that can restrict the owner's use or transfer of the property. These encumbrances are significant because they can diminish the property's marketability and value, and they must be addressed or released before a clear title can be transferred to a new owner.

In contrast, physical limitations on property use refer to zoning laws or land use regulations that dictate what can be done with the property, but they do not constitute claims against the property itself. Future development plans focus on prospective changes in the surrounding area, which do not affect existing ownership or title transfer directly. Types of compensation for property loss relate to the financial aspects of property ownership and damage claims, which are separate from encumbrances that impose obligations or restrictions on the title itself. Understanding these distinctions is essential in real estate transactions, particularly in identifying how encumbrances can impact ownership rights.