True or False: A buyer should agree to buy property even if it is subject to encumbrances of record without knowing what they are.

A buyer should not agree to purchase property that is subject to encumbrances of record without understanding what those encumbrances are. Encumbrances can significantly affect the rights of the property owner and can impact the property's value and utility. They may include mortgages, liens, easements, and restrictions, all of which could impose additional obligations or limitations on the property.

Without knowing what these encumbrances entail, a buyer risks taking on unexpected liabilities, purchasing property with legal limitations, or facing financial consequences due to obligations that come with these encumbrances. Therefore, it's essential for a buyer to conduct thorough due diligence, including reviewing the title report and understanding any encumbrances that may be associated with the property before making an informed decision to proceed with the transaction. This protects their interests and ensures that they are fully aware of any issues that could impact their ownership rights.