What term refers to a right or interest in land that lowers its value but does not prevent selling or transferring it?

The term that refers to a right or interest in land that diminishes its value but does not impede the sale or transfer of the property is "encumbrance." An encumbrance can include various types of legal claims or liabilities against the property, such as mortgages, liens, or easements, which may affect the use or value of the property. However, these encumbrances do not necessarily prevent the owner from selling or transferring the property; they simply indicate that there are certain limitations or claims attached to it.

For instance, a property may have a mortgage as an encumbrance, indicating that the owner still owes money on the loan. While this encumbrance decreases the owner's equity in the property, it does not obstruct the sale of the property, as the new owner would typically assume or pay off this debt at the time of transfer. Understanding encumbrances is crucial in real estate transactions and title insurance, as they can affect marketability and value, yet can still allow for legitimate sales and transfers of ownership.