Which of the following would be considered an encumbrance?

An encumbrance is a claim against a property that affects the owner's rights or the property's value. It can include mortgages, liens, or easements that create a financial burden or a limitation on the use of the property.

In this case, a mortgage on the property fits the definition of an encumbrance perfectly. When a mortgage is taken out, the lender holds a legal claim to the property as security for the loan. This means that if the borrower defaults on the loan, the lender has the right to foreclose on the property to recoup the owed amount. The existence of a mortgage directly impacts the property owner's ability to freely transfer or sell the property since the loan must be satisfied before the property's title can be transferred to another party.

On the other hand, a renter's agreement, while it does impose certain obligations and rights regarding the use of the property, generally does not affect the title to the property in the same way a mortgage does. A purchase offer is simply an expression of interest in acquiring the property and does not represent a legal claim against it until accepted and finalized. A public advertisement of the property is a marketing tool and does not create any claims or restrictions on the property.

Thus, the mortgage is the only option