Define "encumbrance" in real estate terms.

An encumbrance in real estate refers to a claim or liability that is attached to a property. This may include mortgages, liens, easements, or restrictions that can affect the use or value of the property. Encumbrances can limit the owner's ability to transfer clear title to the property or can impose restrictions on how the property can be utilized. For instance, a mortgage is an encumbrance because it is a legal claim against the property that secures a loan, while a lien may be the result of unpaid taxes or legal judgments against the owner.

Understanding encumbrances is critical for appraisers because they can significantly impact the property's marketability and value. Recognizing different types of encumbrances helps in conducting accurate property assessments. The other options do not align with the definition of encumbrance. Financing methods or investment strategies pertain to how a property is purchased or invested in, while descriptions of property features relate more to marketing than to legal claims against the property.