Encumbrance Certificate
Buying a house isn’t everyone’s business not just because it requires huge finances for building a house which everyone’s pocket cannot afford but also because it is a long-term commitment and requires a lengthy procedure from purchasing land to acquiring property papers to availing a loan. One of the essential documents that you need to obtain while buying a house is an encumbrance certificate. So you must ensure you know everything about it to avoid any hurdle in getting it.
What is an encumbrance certificate?
Encumbrance certificate or commonly known as EC is a legal document containing listing all the transactions related to the property in a financial year which starts from 1st April and ends on 31st March. It acts as a record that the property is free from any monetary or legal liability during that period.
Why do you require EC?
An encumbrance certificate is a legal document that confirms the free title and ownership of the property. You need to obtain an EC to buy or sell the property claiming that you are the owner of the property and it has no liability. Also, when you take a loan against the property or a home loan, banks ask you to submit an EC for the 10-15 years depending on the age of the property. The borrowers should thus clear all the dues before getting the registration of the house.
How can you get an Encumbrance certificate?
The process of obtaining the EC differs from state to state. There are some states such as Delhi, Kerala, Tamil Nadu, Odisha, Puducherry, etc. where you can obtain the certificate online, however, in other states, you have to visit the office of sub-registrar to get an EC.
Getting EC through online mode: Here is a step-by-step guide to get an EC online.
- Visit the official website of the land registration portal of your state.
- Next, find the option of ‘Apply EC’.
- As you click on it, you will be redirected to the application form of the EC. Fill the required form and then click on the save/update button.
- Next, enter the time for which you want to get an EC.
- Now, submit the EC fee, which starts at Rs. 100 and goes up based on the period for which you want an encumbrance certificate. Also, it varies from state to state.
- Next, you will be redirected to the ‘Acknowledgement’ window. Click on ‘View Acknowledgement’ and print the encumbrance certificate.
- After the verification of the application form and the property in the concerned period, you will be issued EC or NIL EC.
Getting EC through offline mode: You can also obtain the encumbrance certificate by visiting the registrar office where the property has been registered and submit the form 22. You need to fill details such as the name of buyer and seller, property details, etc. The sub-registrar will go through the property papers for the period you want to get an EC. He will provide you with a no-encumbrance certificate if there are no pending loans or other liabilities on the property. Form 15 is issued when there is an encumbrance on the property.
What are the documents that you need to obtain an EC: The title and property details.
- The registration copy of the property
- Address proof of the person applying.
- Copy of property sale deed/gift deed/release deed or partition deed, in case any of it was executed previously.
- In case any deed was executed then, the deed number along with the registration number which contains the date and book number—also, the signature of the applicant.
An encumbrance certificate is issued 15-30 days from the time of filling the application. Thus, you must apply for the EC before time to clear all the dues on the property. You must also obtain other essential property papers such as a Completion Certificate (CC) or Occupancy Certificate (OC)
Summary: Know What is Encumbrance Certificate and its Importance
One of the essential documents that you need to obtain while buying a house is an encumbrance certificate. Encumbrance certificate or commonly known as EC is a legal document containing listing all the transactions related to the property in a financial year which starts from 1st April and ends on 31st March. It acts as a record that the property is free from any monetary or legal liability during that period.
Why do you require EC?
You need to obtain an EC to buy or sell the property claiming that you are the owner of the property and it has no liability. Also, when you take a loan against the property or a home loan, banks ask you to submit an EC for the 10-15 years depending on the age of the property. The borrowers should thus clear all the dues before getting the registration of the house.
How can you get an Encumbrance certificate?
The process of obtaining the EC differs from state to state. There are some states such as Delhi, Kerala, Tamil Nadu, Odisha, Puducherry, etc. where you can obtain the certificate online, however, in other states, you have to visit the office of sub-registrar to get an EC.