Importance of Encumbrance Certificate
- You need EC when you want to buy a house by applying for a loan or sell a house.
- An Encumbrance Certificate contains all the transactions registered for a property during a particular period.
- These details inform you if there are any claims or encumbrance on the property.
- Financial Institutions like banks require 10-15 years of EC on the house for sanctioning a loan.
Procedure to obtain Encumbrance Certificate (EC)
- The application should be submitted to the Sub-Registrar’s office, under which the property is registered.
- At present, computerised EC is issued in the states such as Andhra Pradesh and Telangana, Tamil Nadu, Kerala, Gujarat, Karnataka, Odisha and Pondicherry.
- In the other states, you must apply to obtain EC using Form 22 manually. Along with the application, you must provide the attested copy of your residential address and the purpose for which the Encumbrance Certificate is required at the Sub-Registrar’s office.
- The additional details to be filled in the application include Survey Number, house/ property address, the period for which EC is required, and a full description of the house/ property.
- You must pay a fee with the application form. The amount of fee varies according to the period of encumbrance. The EC is given in the regional language. You must pay an additional fee if you want the EC to be translated.
The officer-in-charge will check the application and process it by checking the entries available in his office. He will issue an EC (Form 15 or Form 16) within 15-30 days of the date of receiving the application.
What is Form 15 and Form 16?
- Form 16 shows Nil encumbrance and is issued if the property does not have any property dues during the given period.
- Form No. 15 will be issued, if the property has encumbrance such as gift, partition, lease and mortgage, the parties involved, the registered number of the document and other details in a date-wise manner.
- If you ask an Encumbrance Certificate for a particular period, you will get the details only for that period and not more.
- The details will be given from the entries available in the register available with the sub-registrar.
To know the complete proof of ownership of the house, the buyer must obtain the possession certificate in addition to the EC.
The encumbrance certificate is an important document used for buying property or land in India. It is an evidence of ownership title. To transfer the property, EC is required compulsory. To apply a loan for the purchase of property in any banks or financial institutions, you have to furnish the Encumbrance Certificate to confirm the property is free from any other debts. It is an important Certificate to get changes to the property done. This certificate must be provided to the related Village or Panchayathi Officer in your area to update the land tax records. EC is an important document which helps to withdraw the Provident Fund (PF) for a property purchase or house construction.
Key Points of Encumbrance Certificate
An encumbrance certificate records the below property-related details.
- It holds the name of the property owner.
- The EC usually pertains to a specific period, and transactions related to a property relevant to that period alone will be considered.
- The transactions and documents that have been registered with the office alone will be reflected in the Encumbrance Certificate.
- Transactions recorded at the sub-registrar’s office exclude the documents like short-term lease and document of testamentary because under the law they are not necessary to register.
- The transactions recorded with the sub-registrar’s office include sale deed, partition deed, release deed, gift deed, settlement deed, mortgage deed, mortgage discharge receipt, and court attachment orders.
- The transactions details will be listed in serial order for the specific period.
- The certificate contains the date and details of the transactions, volume number, book number, document numbers, and names of the parties in the transaction.
- This document provides a complete description of the property as provided in the Sale Deed.
- If you buy land on loan, then this certificate will contain the mortgage details.
NEC (Nil Encumbrance Certificate)
If there are no transactions made within the given period a Nil Encumbrance Certificate (NEC), i.e. the EC with no details of the transaction will be issued.
Required Documents for Obtaining Encumbrance Certificate
- Attested copy of your address
- Photo of any previously executed deed of the property (sale deed, partition gift deed, etc.)
- Details about the property
- Registered deed number with date, volume/CD number, and signature of the applicant should be affixed.
Charges to be Paid to get Encumbrance Certificate
The charges to be paid to get the EC (Encumbrance Certificate) are given below.
- The service charges to be provided by the applicant are Rs 25, and the applicant must also pay legal fees. These payments vary as per the age of the applicant.
- The age of the applicant is below 30 years, then he/she has to remit charges are Rs 200.
- The age of the applicant is 30 or above 30 years, then he/she has to pay Rs 500.
Step by Step Procedure to apply for Encumbrance Certificate
Below given steps helps you to apply for encumbrance certificate in Telangana.
The applicant has to visit the official website of the Meeseva portal.
You will land on the homepage of the portal then click on the Government Forms.
Click on Meeseva services from the displayed list of service.
You can view the list of departments from that you can register for Encumbrance Certificate.
After that, you can download the EC from the portal.
Fill the application form with the necessary details which include the name of the owner of the property, Sale / Purchase deed of the property, etc. The application form should be filled with the right details and attach the correct documents.
Submit your correctly filled application form at the nearest Meeseva centre of your area and pay the specified fee.
After the submission, the applicant will be provided with an acknowledgement slip for further reference.
Later, the concerned officer will check your submitted documents and verifies, the application will be forwarded to the Sub Registrar Office.
After verification, the concerned officer will forward the status to the Meeseva centre and your mobile through SMS.
Who Can Apply?
This document can be requested by both the interested party in acquiring it as a legal representative, parent or guardian and the process will be the same in both cases.
What is the Processing Time?
The Encumbrance Certificate is issued usually within six working days from the time of application date. But sometimes the expedition can last more than a month.
What is the Validity?
- The validity in this type of documents is variable since it can be from one to three months or for a certain number of years.
- It is important that you make sure you know the validity of the certificate because, after this time, it will lack any value for any administrative procedure.
Can They Deny The Issuance Of EC?
Sometimes the request for issuance of the Certificate of Encumbrance may be rejected due to the following reasons.
- Incorrect location of the property
- Wrong page of the property
- Incorrect name of the Owner of the Property
Where do I get the Encumbrance Certificate?
The Encumbrance Certificate is a legal document that records the situation in which specific property is located, according to the inscriptions and documents existing in the archives of the Public Registry of Property. This document contains the description of a property to certify that it has no lien, bond, mortgage or seizure.
It can be requested when it is necessary to prove the situation in which your property is located in the Public Registry of Property where your deed has been registered. Any legal person can request your certificate of encumbrance. It will be valid for a specific time and takes approximately six business days.
To obtain your certificate, you must go to the corresponding registry office, fill out the application with the registration details of the property and cover the respective rights of each property depending on the office.
Purpose of Encumbrance Certificate
The purpose of the certificate is to corroborate the situation of the building, by means of a public document that includes the specific description of the property, in which it is mentioned whether it has or not has a lien. That is, it tells us if the apartment or house has or not has guaranteeing debt and if there are rights that prevent taking full advantage of the property. This certificate can be presented to any person to authenticate that the property is not subject to any of the limitations described above. So it is a usual procedure, and in some cases necessary, to do things that have to do with the property to buy/sell it, request a mortgage loan, donate the building, etc.
Benefits of Encumbrance Certificate
- Every home buyer must have an Encumbrance certificate as the banks are likely to deny home loan against property that won’t have an EC.
- You can prove title hold on your property in future, and no one can showcase your right on the property.
- Disbursal of a home loan becomes easier after showing an Encumbrance Certificate as it proves that the property you are buying is debt-free.
Difference between Encumbrance Certificate and Occupancy Certificate
An occupancy certificate is one which makes you eligible for various civic amenities include sewer, water pipeline, electricity and more. But, it will not declare the particular property is debt-free. So, you must get an Encumbrance Certificate from the seller to get an official acknowledgement that particular property you are buying is debt free.
Why Encumbrance Certificate Is Different From Completion Certificate
An Encumbrance Certificate is completely different from the Completion Certificate. A Completion Certificate is a proof which shows the construction of the particular property is completed according to the rules of laws. Thus, you must acquire an EC before purchasing a property to avoid future disputes from the property that you have owned.
Follow above-given points while stepping out to secure a home buying deal anywhere in the country.
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By: Shailaja K
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