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Encumbrance Certificate in India

Encumbrance Certificate

While buying a property it is important to check whether any legal or monetary complications are associated with it.  An encumbrance certification will help you to find if there are any charges on the property.

What is an Encumbrance Certificate?

The Encumbrance Certificate in India is one of the mandatory documents that is used in the house property transaction. It acts as evidence that the property has a free title and ownership.  When an individual is buying a house the encumbrance certificate can be used to see whether the property is free from legal and monetary liabilities. This encumbrance certificate ensures that the person has total ownership rights over the property and is free from any liabilities.

If any property is purchased by availing a mortgage or in case if it has been pledged then the lender will add a Lien to the house. This ensures that the owner of the property cannot sell the property until the mortgage is paid.

Importance of the Encumbrance Certificate

It is very necessary to ensure that the property an individual wishes to buy has a clear title. Getting the encumbrance certificate assures that the property the person wishes to buy does not have any liabilities. If notice is charged on the encumbrance certificate, then it is very important to rectify it before the property is purchased. This EC will also help in finding out whether any existing owners can legally claim the property.

Also, a loan can be availed to buy the property if the lender is provided the Encumbrance certificate and relevant documents.

What is a Nil Encumbrance Certificate?

While applying for the Encumbrance Certificate the applicant is asked to specify the period for which the information is needed. If no charges are placed on the property during this requested property, then a Nil Encumbrance Certificate is issued. This means that no one of the lenders has placed a lien on the property during that requested period.

What Documents Required to obtain an Encumbrance Certificate in India?

Some of the documents that are required to obtain an Encumbrance Certificate in India are:

  • Property details
  • Deed details
  • The property sale deed/gift deed/ partition deed/ release deed if the deed has been executed previously.
  • The deed number that is obtained on registration contains the date and book number along with the signature of the applicant.
  • Property registration document.
  • Address proof of the applicant.

Please visit the nearest Sub-registrar’s office to know more about the encumbrance certificate in the region.

How to obtain the Encumbrance Certificate in India online?

The EC can be obtained from the sub-registrar’s office where the property in reference is registered. To obtain this Encumbrance Certificate the following steps need to be followed:

  1. The application for obtaining an Encumbrance certificate should be made in Form 22. This form is available on the respective state’s official land registration site.
  2. Attach this application with Rs. 2 stamp paper, an attested copy of the address proof, the purpose of why the certificate requirement, and the details of the property and the title.
  3. The prescribed fees also need to be paid along with the application.
  4. Once the application is filed the inspector will inspect all these transactions that have occurred against the property in a particular period.
  5. The sub-registrar will issue an encumbrance certificate in Form No.15 with all the transactions in a specified period. A nil encumbrance will be issued in Form no.16.
  6. The Encumbrance certificate is issued generally between 15-30 days from the date of the application.

The requisite fees for the certificate start with Rs.100 and go up based on the validity of the certificate. Also, the fees vary from state to state including the rules and regulations. As the certificate is issued in the regional language it can also be obtained in English but an additional fee needs to be paid for it. Both encumbrance certificate and possession certificate should be obtained as proof of the ownership of the property.

How to apply for an Encumbrance Certificate offline?

  1. Visit the sub-registrar’s office (the jurisdiction depends on the location of the property)
  2. Submit the duly filled Form 22.
  3. Enter the details including the name of the seller and buyer, the property details, the type of documents that are required.
  4. Payment of the required fees at the counter.

How to Track the Encumbrance certificate status?

The tracking status of the EC application differs from website to website. Most of the government websites that allow applying for the Encumbrance certificate will also help in tracking the status of the Encumbrance certificate.