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  • In short this is a burden of some sort.
  • A property sold unencumbered is essentially sold free of the type of liability to which the encumbrance might relate
  • If a property is mortgaged, then to loose any financial encumbrance the mortgage must be repaid
  • Similarly if vat is applicable, if there is vat on the property,or stamp duty particularly at a higher rate, or easements, covenants and anything that might diminish the value or saleability of a property.
Published: 24 September 2015 Last Updated: 17 November 2021