All You need to Know about Encumbrance Certificate
Jun 14, 2018 Home Trading Steps
An Encumbrance Certificate (EC) refers to a memo of all the registered transactions related to a property for a particular time period. This respective certificate can be obtained from the office if sub-registrar where the property is registered. It is an important document for sale and purchase of the property.
Let’s understand why Encumbrance Certificate is required for buying and selling a property.
An Encumbrance Certificate gives an assurance that the property which is to be purchased or sold is free from any kind of monetary and legal liability such as the loan on the property has been cleared. The certificate comprises of all related details of property transaction for a specific time period.
Also, an EC is required while applying home loan or a loan against a property. It is important to obtain an EC for a property to be purchased, not only to secure the legal title but also to apply for home loan in the banks as it determines your eligibility for the loan. Banks usually ask for EC of a property for the last 10-15 years. An EC is required for selling a property as well.
Here is how you can obtain an encumbrance certificate. An EC can be obtained from the sub-registrar office where the property has been registered. Presently computerised EC is available in certain states that include Odisha, Gujarat, Tamil Nadu, Andhra Pradesh, Kerala, Telangana, Puducherry and Karnataka. Whereas in other stated handwritten certificate can be obtained through this process:
You need to apply for an EC at a relevant registration office along with the application form (Form 22), details of the property, attested copy of address proof, its title and the fee payable for obtaining the EC. The fee payable depends on the time period for which the EC is obtained.
After the inspection of the records of the property for the specific time period, the EC is issued usually within 15 to 30 days of the application date.
The EC is issued in two forms Form 15 and Form 16. If a property has a chain of transactions then Form 15 will be issued and if there is no transaction recorded for the property the, Form 16 or ‘Nil Encumbrance Certificate’, will be issued.
However, an EC usually includes all the details of the chain of transaction related to the property but it might not contain all necessary information required to prove the ownership of the property. Hence a possession certificate should be obtained along with an EC.
Let’s understand why Encumbrance Certificate is required for buying and selling a property.
An Encumbrance Certificate gives an assurance that the property which is to be purchased or sold is free from any kind of monetary and legal liability such as the loan on the property has been cleared. The certificate comprises of all related details of property transaction for a specific time period.
Also, an EC is required while applying home loan or a loan against a property. It is important to obtain an EC for a property to be purchased, not only to secure the legal title but also to apply for home loan in the banks as it determines your eligibility for the loan. Banks usually ask for EC of a property for the last 10-15 years. An EC is required for selling a property as well.
Here is how you can obtain an encumbrance certificate. An EC can be obtained from the sub-registrar office where the property has been registered. Presently computerised EC is available in certain states that include Odisha, Gujarat, Tamil Nadu, Andhra Pradesh, Kerala, Telangana, Puducherry and Karnataka. Whereas in other stated handwritten certificate can be obtained through this process:
You need to apply for an EC at a relevant registration office along with the application form (Form 22), details of the property, attested copy of address proof, its title and the fee payable for obtaining the EC. The fee payable depends on the time period for which the EC is obtained.
After the inspection of the records of the property for the specific time period, the EC is issued usually within 15 to 30 days of the application date.
The EC is issued in two forms Form 15 and Form 16. If a property has a chain of transactions then Form 15 will be issued and if there is no transaction recorded for the property the, Form 16 or ‘Nil Encumbrance Certificate’, will be issued.
However, an EC usually includes all the details of the chain of transaction related to the property but it might not contain all necessary information required to prove the ownership of the property. Hence a possession certificate should be obtained along with an EC.
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