What is a common consequence of a property having multiple encumbrances?

A property with multiple encumbrances can create complexities in the selling or transfer process. Encumbrances, such as liens, easements, and mortgages, impose restrictions on the property that must be recognized by potential buyers. This can lead to a variety of complications, such as needing to resolve or negotiate terms with existing lienholders or understanding the specific rights of easement holders. Buyers may require additional due diligence to assess how these encumbrances impact their intended use of the property. As a result, the presence of multiple encumbrances can deter prospective buyers or require them to engage in a more complex purchase process, making the transaction more challenging.

In contrast, while multiple encumbrances may limit the property's appeal to certain buyers, it does not inherently increase value, guarantee marketability, or assure that a broad range of buyers will be interested. The potential issues introduced by encumbrances often necessitate careful planning and consideration, thus complicating the overall sale or transfer of the property.