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Related to Unencumbered: unencumbered property
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.
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.