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Understanding Property Encumbrances in Real Estate Transactions


Properties may have encumbrances such as rights of way, water, and/or usufruct. For instance, a right of way can allow a neighbor access to their property, while water rights may permit a neighbor to lay pipes through the property to access fresh water. In the case of a usufructuary right, a residential right may be granted with or without the right to sublet the property.


It's important to note that not all of these rights can be eliminated. If the neighbor is genuinely entitled to the right of way or water rights, acquiring the property will not affect these rights. However, it is also possible that the neighbor was never entitled to these rights, or they no longer exist. Therefore, a comprehensive examination is essential to understand the implications of these encumbrances if purchasing a property free of encumbrances is not feasible. If possible, the deletion of encumbrances should be done before purchasing, and the costs should be borne by the seller.

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