The Element of Encumbrance in Property Conveyancing

Every day, people develop interest and need to own various types of property. It comes from numerous changes that happen in your life. Think of the first time you moved to your new house after getting your first job. You might have been comfortable using a bus to travel to and from work until you had a family and suddenly a car was a necessity. Acquiring such an asset requires the intervention of a conveyancing specialist to transfer the interest and ownership of an asset from the owner to you. Conveyancing is necessary for moving the title of an asset from the seller to the buyer. The following information will teach you about encumbrance, which is an essential element of property conveyancing: 

Defining an Encumbrance

When you think about conveyancing, the first thing that comes to mind is property moving from one person to another. Do you ever think about the things that could hinder this process? Well, such things fall under encumbrances. Encumbrances are claims by third parties against any property that interests you. Claims can be monetary or non-monetary depending on the effect the property has on the party making that claim. 

Forms of Encumbrance

Claims hindering the transfer of property from the seller to the buyer come in many ways. Here are two of these ways:

  1. Encroachment – Encroachment is a form of encumbrance where a party other than the current owner of the property intrudes onto the property. For example, the intruder might have planted a tree whose branches are a nuisance as they extend onto the property. Such a nuisance is an encumbrance to both parties, and the seller can transfer the property only after they resolve the issue with the third party. 
  2. Easement – An easement is another form of encumbrance that prevents the seller or buyer from improving or using parts of the property in a certain way. For example, a government utility agency can have the rights to run water lines through the property you are acquiring. Therefore, you cannot make changes or improvements that can hinder the efficient use of such facilities. You need to be wary of such easements when acquiring property because some of them are quite difficult to resolve or to get rid of. 

Restrictive Covenants

It is common to find restrictive covenants in agreements between sellers and buyers. In such covenants, the seller restricts the buyer from using the property in certain ways. For example, the seller can demand that you leave the outward facade of a building as you found it, especially when you buy a single unit among multiple blocks.

For more information about conveyancing, contact a business like that of Ray Swift Moutrage & Associates.

About Me

Defending my clients at all costs

When I sign on to defend a client, I have to find ways to poke holes in the prosecution's case no matter how air tight it seems. There are always technical and procedural issues to be enforced and work to be done to make sure my client's story is as strong and believable as possible. People who are not familiar with the justice system are often intimidated by the legal processes, so I help them to adjust quickly so that they can manage the stressful situations. This blog is for first time defendants wondering what exactly their lawyers do to manage the defense process behind the scenes.