What could be a consequence of ignoring title encumbrances?

Ignoring title encumbrances can lead to possible ownership disputes and diminished market value because these encumbrances, such as liens, easements, or judgments, affect the legal rights related to the property. If a property owner is unaware of these encumbrances or chooses to disregard them, they may find themselves in legal battles with third parties who have rights to the property. This could result in conflicts over rightful ownership and the ability to use or transfer the property freely.

Moreover, if potential buyers are aware of existing encumbrances, it can scare them away, leading to a decrease in the property's appeal and a reduction in its market value. Consequently, properties that have unresolved title issues may take longer to sell or could sell for less than their market potential. Ignoring these encumbrances not only creates legal issues but can also have long-term financial repercussions for the property owner.