What context can I use each word in?
Learn when and how to use these words with these examples!
lien
Example
The bank has a lien on the house until the mortgage is paid off. [lien: noun]
Example
The contractor filed a lien against the property for unpaid work. [lien: noun]
encumbrance
Example
The property had several encumbrances, including a tax lien and an easement. [encumbrances: noun]
Example
The buyer was hesitant to purchase the car due to the encumbrance of a high loan balance. [encumbrance: noun]
Good things to know
Which word is more common?
Encumbrance is more commonly used than lien in everyday language, as it is a broader term that can refer to various types of legal or financial burdens. However, lien is more commonly used in the context of real estate and property law.
Whatโs the difference in the tone of formality between lien and encumbrance?
Both lien and encumbrance are formal terms that are typically used in legal and financial contexts. However, lien may be considered more formal due to its specific legal definition and usage in property law.
