What Is a Property Encumbrance in NH Real Estate?

🏡 What Is a Property Encumbrance in NH Real Estate?

When buying a home or land in Plymouth, Campton, Thornton, Rumney, Ashland, or anywhere in Central NH, it’s important to understand whether the property has any encumbrances.

An encumbrance is something that limits the full use or ownership of a property — and buyers should always know about them before closing.

Here’s what NH homeowners need to know.

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What Is an Encumbrance?

A property encumbrance is a legal claim, restriction, or limitation on real estate.

This can affect:

✔ How the land can be used

✔ Who can access it

✔ Whether improvements can be built

✔ Future resale value

Encumbrances don’t always stop a sale, but they do change the rights the new owner receives.

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Common Types of Encumbrances in New Hampshire

The most common encumbrances in Central NH include:

1. Easements

Allow another party access across part of your property (driveways, utilities, shared wells).

2. Liens

Legal claims for unpaid debts — mortgage liens, tax liens, contractor liens.

3. Restrictions & Covenants

Rules placed by a developer or HOA that limit use (parking, animals, building size).

4. Encroachments

When a structure crosses a boundary (shed, fence, driveway).

5. Right-of-Way Access

Common in rural NH, especially where long shared driveways exist.

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Why Encumbrances Matter to NH Buyers

Encumbrances can impact:

✔ Location of future buildings or additions

✔ Septic and well placement

✔ Property access

✔ Driveway rights

✔ Utility installation

✔ Taxes and ownership disputes

In mountain or riverfront towns like Campton, Rumney, and Thornton, easements and boundary complications are especially common.

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How NH Buyers Check for Encumbrances

Your title company and attorney will review:

✔ The property deed

✔ Registry of Deeds filings

✔ Surveys and plans

✔ Title search records

✔ Easement documents

✔ HOA rules (if applicable)

Always request the most recent survey, since many older NH properties were mapped decades ago.

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Q&A

Q: Can a property with an encumbrance still be sold?

A: Yes — as long as the buyer agrees to take the property subject to that encumbrance.

Q: Can encumbrances be removed?

A: Some can (paid liens), while others (easements or covenants) are permanent.

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Keywords

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Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com