The Encumbrance Certificate: All You Need To Know!

If someone is planning to buy a house property, they must know the required documents to efficiently execute the property buying procedure.

Some of the mandatory documents such as Occupancy Certificate (OC), Completion Certificate (CC), Encumbrance Certificate (EC) & so on are essential. In this article, we’ll discuss the Encumbrance certificate and other important details regarding it. 

What Is An Encumbrance Certificate? 

An encumbrance is a charge created on the given, whereby it is held as a security for any debt against its owner, which has not been discharged. In Hindi, the encumbrance certificate is commonly known as ‘bhar-mukt praman’. The ‘Encumbrance Certificate’ or ‘Non-encumbrance certificate’ acts as evidence that the property has a free title and ownership. When an individual decides to buy a house, the encumbrance certificate can be used to see whether the property is free from legal and monetary liabilities.

Documents Required to obtain an Encumbrance Certificate

Some of the documents that are required are:

1. Property details
2. Deed details
3. The deed number which is received on registration contains the date and book number along with the signature of the applicant.
4. The property sale deed/partition deed/gift deed/ release deed if the deed has been executed previously.
5. Address proof of the applicant.
6. Property registration document.

Types Of Encumbrance Certificate 

Encumbrance certificates are of two types:

1. Form 15: If the property in question has any encumbrances during the period for which the applicant has sought a certificate, the sub-registrar’s office issues an encumbrance certificate on Form 15.
2. Form 16: If any property has not registered any encumbrances during the period for which the applicant has sought a certificate, the sub-registrar’s office issues a nil-encumbrance certificate on Form 16.

Online Application Process for an Encumbrance Certificate 

Below is the procedure to apply for an EC online:

1. Visit your State’s official land registration website and select the option to apply for an EC.
2. Enter all the required details & then click save/update.
3. Enter the period for which you require the EC and then click on ‘Calculate Fee’.
4. Upon paying the required application fee, you’ll be directed to the ‘Acknowledgment’ window. Click on ‘View Acknowledgement’, and you’ll be allowed a print of the acknowledgement.
5. An inspection will be carried by an inspector from the land records department for verification. 
6. After the completion of the inspection, an EC will be issued of all transactions which occurred during the specified period. In case there were zero transactions during the period, then a nil EC will be issued.

Finally!

Aside from making sure that the EC is made available by the seller, the buyer must also follow due diligence and make personal checks to ensure that the property in question is free from any encumbrance. While the documentary proof surely acts as a safety net, land-related frauds in plot sales in rural areas are quite common. Unfortunately, such buyers are unable to move to the Real Estate Regulatory Authority (RERA) as these transactions do not fall under the ambit of the RERA. 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.