ENCUMBRANCE English meaning

In the U.S., a lien that is issued by the government takes precedence over all other liens, mortgages, etc. This means that the federal lien must be paid before anyone else takes their share. Encroachment refers to a kind of intrusion that someone who is not the property owner makes upon another person’s property. For instance, if a neighbor puts up a fence, and the fence is over the property line, then this is a form of trespassing, which is a form of encroachment.

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  1. However, according to GAAP, outstanding encumbrances in the year-end are not considered expenditures for the fiscal year.
  2. In some cases, such as a line of credit, there might be no exchange of money until the homeowner actually taps the line of credit and borrows money.
  3. A lien serves to guarantee an underlying obligation, such as the repayment of a loan.
  4. The most common types of encumbrance apply to real estate; these include mortgages, easements, and property tax liens.
  5. It allows government entities, nonprofits, and some businesses to more effectively monitor and control how much they spend.
  6. The bank is then the owner of the property until the borrower has paid off the mortgage.

Consequently, it ensures accounting for the anticipated expenditure is done. This article explores the practice of encumbrance accounting, its importance, and how a typical encumbrance accounting process works. Lenders and buyers require a clear title, so it’s best to resolve involuntary encumbrances quickly. In some cases, such as a line of credit, there might be no exchange of money until the homeowner actually taps the line of credit and borrows money.

What Is an Encumbrance?

When a property no longer has any encumbrances, it’s considered ”unencumbered.” Other encumbrances, such as zoning laws and environmental regulations, do not affect a property’s marketability but do prohibit specific uses for and improvements to the land. Prior to closing, however, the new buyer discovered that the property extended four feet into the neighbor’s property – and that this encroachment had existed for over 30 years! The Greens did exactly that, adding a new wall to the building that cost them over a thousand dollars. The Greens then sued Ayres for the money they had to lay out to remedy an encroachment they were told did not exist.

One way is to look for over-expenditures in reports generated after posting actuals and encumbrances. The other is to identify potential over-expenditures before they occur by verifying whether the budget has sufficient funds to cover the actual and hidden costs. Encumbrance accounting is often used as a planning tool for budgetary control, particularly in government organizations using government accounting standards and nonprofits. However, while fees are paid to the property owner, easements can negatively affect property values.

Encumbrance accounting sets aside specific assets to pay anticipated liabilities. For example, a company may reserve a sum of cash to settle up its accounts payable. The presence of an encumbrance can https://1investing.in/ give the illusion that there are more available funds inside an account than what is actually free for use. The money that has been set aside cannot be used for any other expenditures or transactions.

If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. An easement occurs when the property owner retains title to the land, but another entity also has the right to use the land for a specific reason. One common type of easement is an easement for maintenance of utilities. An easement could also be granted for access (right of way) to a parcel of land that is landlocked without a road.


An example of a pre-encumbrance transaction is a purchase requisition. Encumbrance accounting is also referred to as commitment accounting, which involves setting aside money ahead of time to meet anticipated expenses. The amount is set aside by recording a reserve for encumbrance account in the general ledger. This is to ensure that the organization has sufficient funds to meet anticipated payment obligations. Two fairly common types of involuntary liens are a lis pendens and a mechanic’s lien.


The concept is most commonly used in governmental accounting, where encumbrances are used to ensure that there will be sufficient cash available to pay for specific obligations. By using encumbrances, a government entity can be assured that it will not over-extend its finances. A downside of encumbrances is that they increase the complexity of government accounting to some extent. In management accounting, encumbrance is a management tool used to reflect commitments in the accounting system and attempt to prevent overspending. Encumbrances allow organizations to recognize future commitments of resources prior to an actual expenditure. The term encumbrance covers a wide range of financial and non-financial claims on a property by parties other than the title-holder.

While appropriations are money set aside for budgetary line items, encumbrances are reserves for a specific item. Some examples of encumbrances are utility payments, tax payments, and payroll. The real estate agent will provide the buyer with a land search document that will have a list of any encumbrances. An encumbrance is a burden or obstacle placed upon an item of real or personal property that can work to reduce its value. The term “encumbrance” can also be used to refer to another person’s right to a property. For instance, if Sally wants to sell her house, but Bobby still has partial ownership, then Sally must satisfy Bobby’s right to some of the profits before keeping the rest for herself.

A lease is an agreement to rent a property for an agreed-upon rate and period of time. It is a form of encumbrance because the lessor does not give up title to the property, but one’s use of the property is significantly constrained by the encumbrance meaning lease agreement. The term is used in accounting to refer to restricted funds inside an account that are reserved for a specific liability. An encumbrance is any legal thing that burdens or restricts usage or transfer of the property.

Here, ”involuntary” means that the homeowner did not necessarily agree that such a lien could be filed against the property. The lender, generally a bank, retains an interest in the title to a house until the mortgage is paid off. If the borrower cannot repay the mortgage, the lender may foreclose, seizing the house as collateral and evicting the inhabitants. A lien is a type of security interest, an encumbrance that affects the title to a property. It gives a creditor the right to seize the property as collateral for an unmet obligation, usually an unpaid debt. The creditor can then sell the property to recoup at least a portion of their loan.

The term “encumbrance” is used to describe a burden on a property that can reduce the value of the property. If someone owes $100,000 to the bank in the form of a mortgage, then he must pay the bank back that money upon selling the house, which reduces the amount of profit he makes. To explore this concept, consider the following encumbrance definition. Liens attached by tax agencies are specifically referred to as tax liens. A federal tax lien is notable in that it takes precedence over any other claims by creditors, in most cases. An encumbrance can prohibit students from registering for classes, affect the release of their transcripts, or delay the reception of their diplomas.

7 5 Strengths of Ionic and Covalent Bonds Chemistry 2e

When polar covalent bonds containing hydrogen are formed, the hydrogen atom in that bond has a slightly positive charge (δ+) because the shared electrons are pulled more strongly toward the other element and away from the hydrogen atom. Because the hydrogen has a slightly positive charge, it’s attracted to neighboring negative charges. The weak interaction between the δ+ charge of a hydrogen atom from one molecule and the δ- charge of a more electronegative atom is called a hydrogen bond. Individual hydrogen bonds are weak and easily broken; however, they occur in very large numbers in water and in organic polymers, and the additive force can be very strong. For example, hydrogen bonds are responsible for zipping together the DNA double helix.

The long-period structure forms along specific in-plane orientations and is attributed to buckling in the pentacene monolayer [96]. The incommensurate order can also result in the formation of crystals with anisotropic shapes driven by a more favorable match along specific in-plane directions. Thin layers of quaterrylene on potassium hydrogen phthalate form 1D crystals driven by the establishment of a preferred incommensurate interface orientation [97].

  1. Because D values are typically averages for one type of bond in many different molecules, this calculation provides a rough estimate, not an exact value, for the enthalpy of reaction.
  2. The majority of the values recorded for the pins lay between 2.45 μm and 4.68 μm, which indicated the randomness of the grit-blasting process.
  3. Many or all of the products featured here are from our partners who compensate us.
  4. When polar covalent bonds containing hydrogen form, the hydrogen in that bond has a slightly positive charge because hydrogen’s electron is pulled more strongly toward the other element and away from the hydrogen.
  5. Stable molecules exist because covalent bonds hold the atoms together.

For example, we can compare the lattice energy of MgF2 (2957 kJ/mol) to that of MgI2 (2327 kJ/mol) to observe the effect on lattice energy of the smaller ionic size of F– as compared to I–. At present, gradient corrected https://traderoom.info/ density functionals have been studied mostly for molecular systems (e.g., Andzelm and Wimmer, 1992). Using the bond energies in Table 7.3, calculate an approximate enthalpy change, ΔH, for this reaction.

Energy is released by bond formation.[8] This is not as a result of reduction in potential energy, because the attraction of the two electrons to the two protons is offset by the electron-electron and proton-proton repulsions. The hydrogen and oxygen atoms that combine to form water molecules are bound together by covalent bonds. The electron from the hydrogen splits its time between the incomplete outer shell of the hydrogen atom and the incomplete outer shell of the oxygen atom. In return, the oxygen atom shares one of its electrons with the hydrogen atom, creating a two-electron single covalent bond.

Such bonds occur between two atoms with moderately different electronegativities and give rise to dipole–dipole interactions. The electronegativity difference between the two atoms in these bonds is 0.3 to 1.7. Molecular nitrogen consists of two nitrogen atoms triple bonded to each other. The resulting strong triple bond makes it difficult for living systems to break apart this nitrogen in order to use it as constituents of biomolecules, such as proteins, DNA, and RNA. The Born-Haber cycle may also be used to calculate any one of the other quantities in the equation for lattice energy, provided that the remainder is known. In metallic bonding, bonding electrons are delocalized over a lattice of atoms.

Epitaxy of Small Organic Molecules

Transition metal complexes are generally bound by coordinate covalent bonds. For example, the ion Ag+ reacts as a Lewis acid with two molecules of the Lewis base NH3 to form the complex ion Ag(NH3)2+, which has two Ag←N coordinate covalent bonds. Also in 1916, Walther Kossel put forward a theory similar to Lewis’ only his model assumed complete transfers of electrons between atoms, and was thus a model of ionic bonding. Both Lewis and Kossel structured their bonding models on that of Abegg’s rule (1904). However, it still doesn’t make sense to me because I’ve looked up the values for these bond types and clearly the ionic bond in NaCl is strong than the covalent bond in water between hydrogen and oxygen. Thus, the smallest are the left- and right-hand side faces in Figure 7.14, which are situated normally to the strongest connecting force; the largest (top and bottom) faces are normal to the weakest bonding force.

Hydrogen Interactions with Weak Si—Si Bonds

In relation to this first characteristic, the chemistry of life is focused on both the molecular and macromolecular levels. More global chemical effects are used by biologists to explain, for instance, the distribution of molecules on both sides of a membrane, but most of the explanations are centred around individual molecules. In this model, the gradient of protons which forms across the membrane of the mitochondrion during the functioning of the respiratory chain was a sufficient explanation for the synthesis of ATP from ADP and phosphate. Among the different explanations provided by the chemist, molecular biologists favour those at the macromolecular level. Weak bond formed when a hydrogen atom is shared between two electron-attracting atoms such as oxygen or nitrogen.

The Relationship between Bond Order and Bond Energy

By contrast, in ionic compounds, the locations of the binding electrons and their charges are static. The free movement or delocalization of bonding electrons leads to classical metallic properties such as luster (surface light reflectivity), electrical and thermal conductivity, ductility, difference between information and data and high tensile strength. Not all bonds are ionic or covalent; weaker bonds can also form between molecules. Two types of weak bonds that frequently occur are hydrogen bonds and van der Waals interactions. The weakest of the intramolecular bonds or chemical bonds is the ionic bond.

Ionic bonds may be seen as extreme examples of polarization in covalent bonds. Often, such bonds have no particular orientation in space, since they result from equal electrostatic attraction of each ion to all ions around them. Ionic bonds are strong (and thus ionic substances require high temperatures to melt) but also brittle, since the forces between ions are short-range and do not easily bridge cracks and fractures. This type of bond gives rise to the physical characteristics of crystals of classic mineral salts, such as table salt. A more practical, albeit less quantitative, approach was put forward in the same year by Walter Heitler and Fritz London.

Bond Dissociation Energy

The dangling-bond density in the elimination layer becomes the bulk defect density as the layer is buried deeper and becomes frozen in. This proposed process allows the weak-bond density to determine the dangling-bond density at all temperatures [439]. ZnO would have the larger lattice energy because the Z values of both the cation and the anion in ZnO are greater, and the interionic distance of ZnO is smaller than that of NaCl. I tried specifically looking for copper, silver, and iron and couldn’t find the bond strength between atoms.

Next the polar covalent bond and the strongest the non polar covalent bond. This type of bond is common and occurs regularly between water molecules. Individual hydrogen bonds are weak and easily broken; however, they occur in very large numbers in water and in organic polymers, creating a major force in combination. Hydrogen bonds are also responsible for zipping together the DNA double helix.

To completely fill the outer shell of oxygen, which has six electrons in its outer shell, two electrons (one from each hydrogen atom) are needed. Each hydrogen atom needs only a single electron to fill its outer shell, hence the well-known formula H2O. The electrons that are shared between the two elements fill the outer shell of each, making both elements more stable. Multiple bonds between carbon, oxygen, or nitrogen and a period 3 element such as phosphorus or sulfur tend to be unusually strong.