What is a non-possessory interest in a property that burdens the title called?

A non-possessory interest in a property that burdens the title is known as an encumbrance. This is a legal term that refers to any claim, lien, charge, or liability attached to a property that may affect the owner's rights. An encumbrance does not bestow ownership or possession of the property but rather places certain limitations or obligations on it.

Encumbrances can take various forms, including mortgages, easements, and liens. For example, when a property has a mortgage, the lender has a lien on the home, meaning they have a right to take possession if the borrower defaults on the loan. Similarly, an easement allows others the right to use a portion of the property for a specific purpose, which can impact how the owner may use their land.

Understanding encumbrances is crucial for buyers and owners, as they can significantly affect property value and the owner's ability to freely transfer or utilize their property. This makes the term important in real estate transactions and property law, signaling potential obligations or limitations for property owners.