Encumbrance

An encumbrance is a burden on property, such as a mortgage, servitude, usufruct, lease, lien, attachment, pre-emption right or public-law restriction. It does not necessarily prevent ownership, but it may reduce value or limit disposal and use. In Swiss real estate practice, many encumbrances appear in the land register, while others arise from statute, contract or public law. Due diligence therefore examines registered rights, priority, duration, enforcement risk, zoning and whether unregistered interests may affect the buyer or lender.