What is an Encumbrance Certificate(EC)?

An encumbrance certificate is evidence that the property in question is free from any financial and legal liabilities. That means when buying a house, flat or plot, it is important to verify that the property does not have any monetary or legal dues.  Encumbrance Certificate(EC) is evidence that the property can be sold as a free title and the ownership will come to you without any associated baggage.

This is a document that you will be able to procure from the registration authority’s office.It is your guarantee that the property you are about to invest in is clear of any legal dues and has a marketable title.


Importance of an Encumbrance Certificate (EC)

The word Encumbrance is simply a reference to any liabilities in the form of a mortgage or a loan against the property that has not been cleared. The encumbrance certificate is provided from the sub-registrar’s office where the particular property is registered. All the details of any transaction on the property will be listed in it.

The encumbrance certificate is important if you plan to buy/sell the property or those applying for a home loan or obtaining a loan against property In all cases, governmental authorities will insist on a 13-30 years encumbrance certificate. Government authorities and financial institutions like banks usually demand 10-15 years of encumbrance. However, you can also ask for up to 30 years encumbrance certificate to be checked. If you still have doubts, you can take a Possession Certificate of the ownership of the particular land, which is available from the village office.

How to get an EC?

If you want to get your certificate you will need to apply for it with a Form 22 with a Rs. 2 non-judicial stamp affixed. This is addressed to the tahsildar and will have to provide the residential address and the purpose for which the certificate is needed.

You will also need to

  1. Attach an attested copy of your address proof.
  2. Mention all the title details, the ownership details and survey number etc.,
  3. Mention the period, give a detailed description of the property, the area it covers and all the boundaries.
  4. The fee applicable is on a per year basis. Any fraction of the year is considered a complete one.
  5. The requisite fee needs to be paid. The fee is to be paid according to the period of encumbrance. The encumbrance year commences from April 1st of a calendar and closes on March 31st, of the next calendar year. The EC is also usually provided in the regional language. An English translation may be obtained by paying an additional fee.
  6. The application should be submitted to the jurisdictional sub-registrar’s office, under which the property is registered.


The time taken to get an EC:

All of this has to be submitted at the jurisdictional sub-registrar’s office. In turn the tahsildar will request a report from the Patwari on the particular property.

If the property is clear, and the enquiry conducted comes out clean then the “no encumbrance certificate” is provided. It generally takes between 15 to 30 working days from application to receiving your encumbrance certificate.

What are Form No. 15 and Form No. 16:

You will get your encumbrance certificates either on Form No 15 or Form No 16.

Form No. 15

Encumbrance Certificate on Form No. 15 will contain a record of sale, lease, mortgage, gift, partition, release etc. All of this will have to be registered with the competent authorities and placed on record in Book I that is maintained by the registering authorities for the specific period that the certificate is being asked for.

Form No. 16

You will get your encumbrance certificate in a Form No. 16 only when there is nothing by way of transactions for the time frame that the certificate is being sought for.

Note that, if you are asking an EC 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.

Source & Images: The-Hindu, Commonfloor, Net


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