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Encumbrance Certificate for Property Buying

Comments(77) Sub Category:Property Registration,Real Estate Trend Posted On: Jul 01, 2010

property buyingThe encumbrance certificate is used in property transactions as an evidence of free title/ownership. When buying an apartment, land or house, it is important to confirm that the land or property does not have any legal dues. A prospective home buyer must ensure that the property he intends to purchase has a clear and marketable title. The encumbrance certificate certifies that the property is not mortgaged and has no legal dues. The encumbrance certificate for property is available from the sub registrar office where the deed has been registered.

Encumbrance Certificate

The encumbrance certificate is vital for property buying, applying for Home loan or Loan against Property. Government Authorities and Financial Institution like banks etc demand 13 years of encumbrance. You could demand 30 years encumbrance certificate to be checked. If you still have anymore doubts, you can take a Possession Certificate of the ownership of the particular land, which is available from the village office.

The “Encumbrance” means the charges or liabilities created on a particular property, whereby it is held as a security for any debt of its owner which has not been discharged as on date. The encumbrance certificate contains all the transactions registered relating to a particular property for a period (as required).

The encumbrance certificates are issued in Form No. 15 or 16. If the property does not have any encumbrance during the said period, Form 16 will be issued i.e., certificate of Nil Encumbrance. If the property has any encumbrance registered during the said period form No. 15 will be issued. The certificate in form 15 discloses the documents registered in respect of the property, the parties to the deed, nature of the encumbrance, amounts secured or transacted in the said deed, the registered number of the document, Book No., Volume No., date-wise.

Limitations of Encumbrance Certificate

Government Authorities and Financial Institution like banks etc demand 13 years of encumbrance to confirm that the land or property does not have any legal dues. Public in general frequently use encumbrance certificates in property transactions as the sole evidence of free title / ownership. They are under the impression that the encumbrance certificate would disclose all the encumbrances that a property may have. However, encumbrance certificate has certain limitations and public should not completely rely on this certificates.

The encumbrances disclosed in the certificate are for the period for which certificate is issued and any encumbrance created at a prior date or at a later date are not included in the said certificate. Hence public should not completely rely on the certificates issued by the Registrar or Sub-Registrar office for tracing the clear title of the said property.

Procedures for Encumbrance Certificate

When you intend to purchase a property, an encumbrance certificate is a very important. The encumbrance certificate contains all the transactions registered relating to a particular property for a period. Government Authorities and Financial Institution like banks etc demand 13 years of encumbrance. You could demand 30 years encumbrance certificate to be checked. Before buying any land or house, it is important to confirm that the land does not have any legal dues. Following is procedure to obtain a no encumbrance certificate or encumbrance certificate.

  • Apply on Form 22, with a Rs 2 non-judicial stamp affixed, to the Tahsildar giving your complete residential address and the purpose for which the certificate is required.
  • Furnish details of ownership of property giving correct survey number and place where the property is situated. It is very important that the period, full description of the property, its measurements, and boundaries are clearly mentioned in the application
  • The requisite fee needs to be paid. The fee is to be paid year-wise. The encumbrance year commences from April 1 of a calendar and closes on March 31, of the next calendar year. Any fraction of the said encumbrance year attracts fee for the full year.
  • Enclose address proof such as Copy of ration card or any proof of residence address duly attested along with application.
  • The application should be submitted to the jurisdictional sub-registrar’s office under which the property falls.
  • In case the property does not have any encumbrance during the period, Form 16 is issued. This means no charge has been registered on the property. In case the property has any charges registered against it, then Form No 15 is issued.
  • Form 15 discloses the nature of charges created, documents of the property registered, amount secured, and the registration details and references.
  • In case there is no such entry and the report is favorable, the no encumbrance certificate is issued after conducting a detailed enquiry. The time taken may be anywhere between 15 to 30 days.
 

77 Responses to “Encumbrance Certificate for Property Buying”

  1. manjunath says:

    hi
    Am going to buy a plot,legally all docs are ok, then while registering a site (plot) what are all the points I have to take care..pls send me the points..

  2. Sudhakar says:

    I am in the process of buying agriculture land. When we reviewed the EC, there was couple of transactions about loan taken againt the land. Landlord and gurantor signed those documents. Now the landlord is willing to release the loan. Is the gurantor needed to present to release the loan taken again the property.

  3. Sudhakar says:

    Subscribing to this list.

  4. RAKESH says:

    Hi, plz tel me,
    What is difference between EC & Search plot document from SRO.
    Which is the final for plot registertion

    Rakesh

  5. RAKESH says:

    Hi, plz tel me,
    What is difference between EC & Search plot document from SRO.
    Which is the final for plot registertion

    Rakesh

  6. Bobby A Reddy says:

    Sir,

    I participated in the auction property and succeeded in highest bid and paid the 25% of amount to Bank. After that I have taken the current EC and seen there is no Mortgage details of the Bank. I checked with the Broker sitting beside Registration office. He told properties which are mortgaged after 2008 will reflect in EC and before that it doesn’t. Kindly let me know it is correct and will there be any legal complications in future. Can I can go ahead with paying balance amount to get the registration on my name.

  7. johnywalker says:

    Thanks for sharing your info. I really appreciate your efforts and I will be waiting for your further write ups thanks once again.

  8. Joan Sanders says:

    Very useful info. thank you for sharing this. It helped me know a lot about EC. thank you very much

  9. Rao KB says:

    Is there any way to get EC from Internet?, If we pay amount through ONLINE. Like in Andhra Pradesh, will get it through ESEVA

  10. rudra says:

    Thanks for sharing your valuable information here i got here i got good content about certification of property buying and there limitations

  11. Ramon Danczak says:

    Superb post however I was wondering if you could write a litte more on this subject? I’d be very grateful if you could elaborate a little bit more. Many thanks!

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  16. kumar agrawal says:

    I want to buy a property in Delhi , I asked my vendor for Encumbrance Certificate and also with a advocate and they advised me that you can have a search in sub registrar office or if you want to take loan then the bank pannel lawers will issue NON Emcumbrance Certificate based on the search with the sub registrar office, but their is no provision as such in Delhi and the Sub Registrar does not issue EC. Please advise is this true? or how to get official Non Encumbrance Certificate from authorities.

    Please reply.

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  18. revathi says:

    my fathers native is suleripalya,kollegal(tk),karnataka. he purchased a land before 35 years. now i need the ec of the land from 1965. can u help to get the details through online.

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