Encumbrance: Definition, Types & Examples

encumbrance

Definition: Encumbrance is a legal claim affecting a property’s sale.  It can be a structural encroachment or any claim attached to a property that directly affects its value or obstructs its usage.  The most common examples seen in immovable properties are mortgages, easements, and property tax liens. Some encumbrances can affect a security’s marketability, but …

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Easement: Definition, Meaning, Types & Example

easement

The most frequent type of encumbrance is referred to as an easement. It refers to a scenario in which a company or an individual is granted permission to utilize a portion of the property owned by another party. When a person or company intends to purchase a piece of property, it is essential to get …

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Wash Sale Rule: Example and How to Avoid It?

wash sale rule

Taxes are statutory deductions that an individual and organization pay to the government. Taxes generate revenue for running the government. If taxpayers evade tax, it must be within the ambit of the law.  A Wash Sale is a wealth management practice to take advantage of harvesting tax losses to reduce taxes. To prevent investors who …

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What is a Customer? Definition & Meaning

Customer

A mindset that prevails in most businesses is that the customer is king. “Customer is always right” is another phrase that emphasizes the customers’ role in the business. The customer has become the center of every business stemming from when customers run after the business; the reverse is now the case. Customers today have many …

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