encumbrance

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Encumbrance

1. In accounting, an amount of money that one is required to spend on a stated thing in the future. For example, a portion of the proceeds of a sale may be encumbered to pay for the cost of goods sold.

2. In real estate, any claim of ownership that may cloud the legitimacy of a sale. See also: Bad title.

encumbrance

1. A liability on real property. For example, a mortgage encumbers title to real estate because the lender has an interest in the property. Compare unencumbered.
2. A commitment within an organization to use funds for a specific purpose. Thus, a college may encumber funds for later payment to cover expenses associated with a faculty member's trip to recruit new professors.
References in periodicals archive ?
The elimination or transfer of mortgages and or other encumbrances will take place within 45 days of a notice sent out to affected parties, who have the right to appeal.
As outlined in the lawsuit, undisclosed encumbrances executed by Wentworth have resulted in an estimated $720,000,000 in underpayments by Wentworth to its customers had they been able to shop their settlements to competitive firms," says Feldman.
This comment will focus on the policy behind zoning regulations,(10) what is considered an encumbrance under the covenant against encumbrances provided in general warranty deeds,(11) and what situations will implicate this deed covenant.
The largest NPO of them all, the federal government, uses a cash basis for accounting, which is at the other end of the spectrum from "normal" encumbrance accounting.
31)Net realizable equity is the value assigned to the taxpayer's assets less any exemptions and encumbrances superior to the Service's position.
84 years for net case service dollar encumbrances for non-competitive closures.
The assets shall be sold free and clear or all liens, claims and encumbrances with any such liens, claims and encumbrances, if any, to attach to the sale proceeds.
Encumbrances outstanding (lapsed) (section 1700, paragraph .
IDeaS' web delivery provides all the benefits of IDeaS' technology with none of the encumbrances inherent in a traditional software purchase.
The added bonus is that there are no smokestacks, condensers or other encumbrances cluttering the roof, which becomes an obstruction-free roof deck.
As part of an asset sale agreement with Advantage Health Corporation and Lahey Clinic, Symmes must convey the assets comprising the hospital on or before July 30, 1994 free and clear of all encumbrances.
363 approving procedures to sell certain assets free and clear of liens, claims and encumbrances.