Which of the following defines encumbrances?

Encumbrances are best defined as restrictions or claims against property that affect its use or value. This can include a variety of interests such as liens, mortgages, or easements, which dictate how a property can be used or impose financial obligations on the property owner.

Understanding encumbrances is crucial in real estate, as they can significantly impact the marketability and value of a property. For example, a lien placed on a property means that a creditor has a claim against it, which must typically be resolved before the property can be sold or refinanced. Similarly, easements grant certain rights to others, such as access across the property, which can restrict how the property owner utilizes their land.

In contrast, freehold ownership rights and full ownership of the property refer to an individual's complete title to a property without external claims. These terms imply unrestricted ownership, which does not accurately describe the concept of encumbrances. Thus, option B is the most accurate definition, capturing the essence of how encumbrances function in relation to property rights.