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 ?
When choosing the property suitable to buy, the purchaser should obtain a valuation of the asset and conduct a search at the Land Registry to find out whether the property is subject to any mortgages, memos or other encumbrances or restrictions.
This robs Human Encumbrances of decision makers' private papers, including new and very informative political sources including De Grey's meticulous 107,000 word long Irish Diary and his, his wife's, Heytesbury's and Clarendon's letters.
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 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.
Method of encumbrance accounting and reporting (section 1700, paragraph .
363 approving procedures to sell certain assets free and clear of liens, claims and encumbrances.
The purpose of recording a lease is to protect the rights of innocent purchasers who acquire an interest in the property without knowledge of prior encumbrances; and to establish a public record which will furnish potential purchasers with notice of previous conveyances and encumbrances that might effect their interests and uses.
According to the court order, the assets acquired by Providential Holdings will be free and clear of all liens, interests and encumbrances, and Providential has no liability for any other liabilities of Western Medical, Inc.
CSX railroad now owns it and with government encumbrances now lifted, about 400 new luxury homes and townhomes will be created for sale around the grounds.
Marketable title" means the title is free from encumbrances and the purchaser can hold the land free from a probable claim by another.