Encumbrance

Hi,

Let's say that parents decide to sign their house over to their two daughters. The first floor will go to the older daughter and the ground floor will be left to the younger one. The first floor's empty, so technically, the older daughter can move in right away, but the other has to deal with an 'encumbrance' because two people (her parents) are still living there.

What do you call the burden somebody has to put up with when they have a piece of property with somebody living in it? 'Encumbrance' sounds too clumsy and a lot of people wouldn't probably understand it anyway.

Isn't there a different word in English that'd convey the same meaning?

Thank you.