Legal Definitions - mesne encumbrance

The term mesne encumbrance refers to a claim or liability that affects a property, arising at an intermediate point in time between other claims or events. To understand this, it's helpful to first define an encumbrance.

An encumbrance is a right or interest in property that belongs to someone other than the property owner. It can reduce the property's value or restrict its use, but it typically does not prevent the owner from transferring the title. Common examples include mortgages, liens, easements, and restrictive covenants.

The word "mesne" means "intermediate" or "in between." Therefore, a mesne encumbrance is an encumbrance that comes into existence *after* an initial claim or event related to the property, but *before* a final resolution or a subsequent, later claim. It's a claim that sits in the middle of a sequence of events affecting the property.

Here are some examples to illustrate this concept:

• Example 1: Multiple Mortgages and Liens

  Imagine a homeowner who initially takes out a primary mortgage on their house. Years later, they decide to get a home equity line of credit (HELOC), which functions as a second mortgage. Before the HELOC is fully repaid, a contractor who performed renovation work places a mechanic's lien on the property because they haven't been paid.

  In this scenario, both the HELOC (second mortgage) and the mechanic's lien are considered mesne encumbrances. They arose *after* the initial primary mortgage was established but *before* any potential foreclosure or sale of the property that would determine the final order in which these debts get paid. They are intermediate claims on the property's value.

• Example 2: Property Development with Successive Restrictions

  Consider a large tract of rural land that is initially subject to a broad agricultural preservation easement, limiting its use to farming. Years later, the owner decides to subdivide a portion of this land for residential development. During the subdivision process, a new utility company requires an easement across the newly created lots for power lines, and the local government imposes a specific setback requirement (a type of restrictive covenant) on all new homes for environmental protection.

  Here, the utility easement and the setback requirement are mesne encumbrances. They came into existence *after* the initial agricultural preservation easement was placed on the land but *before* the final individual property sales and the full development of the residential area. They represent intermediate burdens on the property's use and development potential.

• Example 3: Sequential Judgment Liens

  A small business owner defaults on a loan, and the bank successfully sues them, obtaining a judgment lien against their commercial property. Subsequently, a different creditor, a supplier for the business, also sues the owner for unpaid invoices and obtains a separate judgment lien on the same property.

  The supplier's judgment lien is a mesne encumbrance. It was placed on the property *after* the bank's initial judgment lien but *before* any potential sale of the property to satisfy these debts, or a bankruptcy proceeding that might reorder their priority. It is an intervening claim that affects the property's title and value.