Getting a property that fits our pocket and has a nice ambience is quite a challenging task and demands a lot of time and effort. However, besides having a good location and cost, the property must also be free from any liability, legal or financial. Thus, before buying the property, there are a few crucial things that you must cross-check before getting it. For instance, the construction of the property is valid and is legally clear as well.
Everything you need to know about the EC?
One of the essential documents that you need to obtain is the encumbrance certificate. The word “Encumbrance” denotes any liability on a property and Encumbrance certificate, or EC is thus a legal document containing details of every transaction listed on the property in a financial year.
- An encumbrance certificate is required to buy or sell the property.
- You also need an EC if you want to take a loan against your property. Banks usually ask for an EC for the last 10-15 years to ensure that there are no pending dues on the property.
- Encumbrance certificate contains details of all the registered transactions listed on the property. However, there are several transactions such as testamentary documents like wills or short-term leases that are not registered; thus, they will not be documented on the EC.
- You can obtain EC online through the land registration portal in states like Delhi, Kerala, Tamil Nadu, Odisha, Puducherry, etc. In other states, you can obtain EC only by visiting the sub-registrar office.
Necessary Forms related to Encumbrance certificate:
Form 22 is the application form you need to submit when you want to obtain an EC. It requires you to provide details such as complete details about the property, name of buyer etc.
Form 15: If there are any liabilities on the property, then sub-magistrate will issue this form. It contains details such as the date of sale, partition lease, mortgage, release if the property is gifted or is there any involvement of the second party, information related to loans, and taxes etc. All the transactions in the form are listed according to the date.
Form 16: It is a “Nil Encumbrance Certificate” or “No Encumbrance Certificate”, which is issued when there is no liability on the property in the given time.
Essential documents that you require to get an EC: To get an EC, you need to submit the following documents:
- 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.
How to get an Encumbrance Certificate of your property?
In a few states, you can apply for the EC online by visiting the official website of the land registration portal of your state. On the website fill the form 22 along with the EC fee and mention the period for which you want an EC. After filling the application form and submitting the required documents with a fee, the authorities will verify the form and go through the property papers. They will then provide the EC within 15-30 days of applying for an encumbrance certificate.
In other states, you can obtain an Ec by visiting the sub-registrar office in which property is registered. Fill in application form 22 and submit the application fee, period for which you want an EC. The sub-registrar will verify the transactions of the property in the given period and on verification will issue you an EC with form 15 or form 16.
Summary: All you need to know about Encumbrance Certificate in property buying
One of the essential documents that you need to obtain is the encumbrance certificate. The word “Encumbrance” denotes any liability on a property and Encumbrance certificate, or EC is thus a legal document containing details of every transaction listed on the property in a financial year.
Encumbrance certificate contains details of all the registered transactions listed on the property. However, there are several transactions such as testamentary documents like wills or short-term leases that are not registered; thus, they will not be documented on the EC.
An encumbrance certificate is required to buy or sell the property.You also need an EC if you want to take a loan against your property. Banks usually ask for an EC for the last 10-15 years to ensure that there are no pending dues on the property.
You can obtain EC online through the land registration portal in states like Delhi, Kerala, Tamil Nadu, Odisha, Puducherry, etc. In other states, you can obtain EC only by visiting the sub-registrar office.