Property that is not subject to any creditor claims or liens.
Investopedia Says:
For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. Also, if a person were to buy stocks with cash rather than on margin, it is unencumbered.
Related Links:
Do you know how your borrowing activities affect your credit rating? Find out here. The Importance of Your Credit Rating
Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky. Margin Trading


