Encumbrance

An encumbrance is any legal claim, restriction, or liability attached to a property that affects its use, transferability, or value. Common encumbrances include mortgages, tax liens, mechanic's liens (from unpaid contractors), easements (utility access rights), and HOA assessments.

Encumbrances are uncovered during the title search and listed in the title insurance policy. A clean title means no surprise encumbrances; significant ones can delay or kill a transaction.

Why it matters for Milo customers

Milo orders a full title search on every mortgage transaction. Any encumbrance discovered has to be cleared (paid off, released, or accepted) before closing. The crypto collateral side of the deal doesn't create real estate encumbrances — that's handled separately through the custody account, not as a property lien.

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