In any real estate ownership situation, according to Wikipedia:
" An encumbranceis a right to, interest in, or legal liability on real property that does not prohibit passing title to the property but that diminishes its value. ...
"Encumbrances include security interests, liens, servitudes (e.g. easements, wayleaves, real covenants, profits a prendre), leases, restrictions, encroachments, and air and subsurface rights."
Some will consider the covenants, conditions, restrictions and reservations/ regulations (CC&Rs) defined in your governing documents as encumbrances.
Your board or association manager can help you understand what elements of your real estate assets fall under this definition: there is no standard.
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