In terms of property law, what does encumbrance mean?

The term "encumbrance" in property law refers to a legal claim against a property that may affect its value or the owner's ability to transfer ownership. This can encompass various forms of claims, such as mortgages, liens, easements, or restrictions that limit how the property can be used. For example, if a property has a mortgage, the lender has a legal claim on the property until the mortgage is fully paid off, which is an encumbrance that must be accounted for in any transaction involving the property. Understanding encumbrances is crucial for anyone involved in real estate transactions, as they can significantly impact ownership rights and property valuation.

The other options provided do not accurately capture the definition of encumbrance. The right to reclaim property before foreclosure pertains to a specific legal remedy rather than a broad legal claim against property. Investing in property refers to the act of purchasing or planning to purchase property, which is unrelated to encumbrances. Finally, the balance of supply and demand relates to market economics and pricing rather than a legal framework concerning property claims.