What is the transfer of benefits & burdens?

The transfer of benefits and encumbrances is a legal term that marks the point in time at which the responsibilities and benefits for an asset, typically a property, are transferred between the buyer and seller. This point in time is relevant for the legal allocation of risks, costs and benefits in the context of purchase agreements. Once the transfer of risks and rewards has taken place, the buyer usually bears the risks and costs associated with the asset while also receiving the benefits. The exact timing of the transfer is often specified in the purchase agreement and can have important implications for the legal position of the parties.