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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.


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 bill grants the head of the land registry department the authority to exempt, eliminate, transfer and cancel mortgages and or other encumbrances, depending on the case and under certain conditions.
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.
Since proximity and encumbrance are highly correlated, the effects of one could be attributed to the other if both are not adequately accounted for.
Alternatively, Congress could increase the basis of an encumbered asset by the difference between the decedent's carryover basis and the encumbrance (whenever debt exceeds basis) and reduce the $1.
32) Therefore, "a zoning ordinance, existing at the time of the contract, which regulates only the use of the property, generally is not an encumbrance making the title unmarketable.
Although the system does not support purchase orders, encumbrance reporting can be handled through the general ledger.
That ruling means that the city would have to prove there is available commercial space within the specified zone, which is too much an encumbrance,'' Newton said.
This time, it's collapsed, unraveling, burrowing out of its studio--gorgeous, but also an encumbrance, a kind of Gregor-the-cockroach object that exceeds description: titanic stuff.
4975-7(b)(8)(i), which provides that an exempt loan must provide for the release from encumbrance of plan assets used as collateral for the loan.
Method of encumbrance accounting and reporting (section 1700, paragraph .
I think we should pay cash for some of our infrastructure needs if we possibly can to eliminate that future encumbrance on our children's future.
By it [the taxpayer] merely satisfied an encumbrance on property in which it had an equity and there was no release of assets |previously offset by the obligation' of the notes or bonds evidencing the debt secured by the mortgage.