What is Encumbrance Certificate in Property Buying?

Hello Vinu,
1) First and foremost, download the Form 22. Affix it with Rs. 2 non-judicial stamp and address to the Tahsildar, giving an attested copy of your residential address and the purpose for which the certificate is required.

2) Provide the details of ownership such as correct survey number and place where the property is situated. It is very important that the period and full description of the property are mentioned clearly in the application.

3) The requisite fee needs to be paid. The fee is to be paid according to the period of encumbrance. The encumbrance year commences from April 1st of a calendar and closes on March 31st, of the next calendar year.

4) The application should be submitted to the jurisdictional sub-registrar's office, under which the property is registered.

The EC for property can be obtained from the sub-registrar's office where the particular property has been registered.

Thanks Sujan,
What is the importance of Encumbrance Certificate? Will it help in applying home loan? Why financial institutions and govt. authorities demand for the EC?

Well Vinu,
As i know, it is important for those who is obtaining a loan against property or when one wants to sell or buy a property. An encumbrance certificate contains all the transactions registered relating to a particular property for a certain period (as required). These details also consist any claims or encumbrance on the property.

Government authorities and financial institutions like banks usually demand 10-15 years of encumbrance. However, you can also ask for up to 30 years encumbrance certificate to be checked.