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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 ?
Lagged disclosure can help market participants understand trends in encumbrance but they are of limited value understanding the current financial position of an organisation.
Baghdasarov said that if there were a buyer, SCA would have released it of encumbrance long ago.
Although the system does not support purchase orders, encumbrance reporting can be handled through the general ledger.
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.
Asset encumbrance above 80 Percent is a reflection of their business models, based on covered bond funding.
it was the Court's view that a property transfer posed numerous potential problems for the plan, including a shortage of funds to pay promised benefits, assumption by the plan of the obligation to pay an encumbrance, overvaluation of the property, lack of liquidity and the employer's substitution of its judgment as to investment policy.
Method of encumbrance accounting and reporting (section 1700, paragraph .
Simply put, a broker's lien is a property right that imposes a charge or an encumbrance upon property for the amount of commissions owed to the broker.
Products and services of Commerce Title and affiliates include title insurance policies, title reports, settlement closings, ownership and encumbrance searches, uniform commercial code searches, environmental deed services, 1031 exchanges, home improvement reports, full appraisals, automated valuation model (AVM) appraisals, appraisal reviews, property information reports, and pre-foreclosure information reports.