Unencumbered

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Related to Unencumbering: unencumbered property

Unencumbered

Property that is not subject to any claims by creditors. For example, securities bought with cash instead of on margin and homes with mortgages paid off.

Unencumbered

Describing the title of a property where there are no competing claims, liens, or anything else that would hinder its transfer. That is, if a property has undisputed ownership, its owner is said to be unencumbered. An owner with unencumbered property may sell the property without any legal difficulties. Generally speaking, a real estate broker researches a property to ensure that there are no competing claims. See also: Quitclaim Deed, Clear Title, Title Search.

unencumbered

Of or relating to an owned asset that does not have a claim against it. Real estate not being used as collateral for a loan and on which all taxes are current is unencumbered. Compare encumbrance.