The encumbrance certificate may be a mandatory document utilized in property transactions as an evidence of free title/ownership. When buying a house, flat or plot, it's important to verify that the property doesn't have any monetary or legal dues. And encumbrance certificate (EC) ensures that there's an entire ownership of the property with none monetary or legal liability. The EC for property are often obtained from the sub-registrar’s office where the actual property has been registered.

Importance of an EC

The encumbrance certificate is vital for those applying for a home equity credit or obtaining a loan against property or when one wants to sell or buy a property. “Encumbrance” means the liabilities created on a selected property, whereby it's held as a security for any debt of its owner, which has not been discharged as on date. An encumbrance certificate contains all the transactions registered concerning a specific property for a particular period (as required). These details also consist any claims or encumbrance on the property.

Government authorities and financial institutions like banks usually demand 10-15 years of encumbrance. However, you'll also invite up to 30 years encumbrance certificate to be checked. If you continue to have doubts, you'll take a Possession Certificate of the ownership of the actual land, which is out there from the village office.

What is Form no. 15 & 16?

The encumbrance certificate is issued in Form No. 15 and 16. If the property doesn't have any encumbrance during the said period, Form 16 are going to be issued i.e., certificate of Nil Encumbrance. If the property has any encumbrance registered during the said period, then form No. 15 will be issued. The certificate in form 15 reveals the documents registered with regard to the property, nature of the encumbrance like gift, partition, lease and mortgage, the parties involved, the registered number of the document and other details during a date-wise manner.

Note that, if you're asking an EC for a specific period, you'll get the small print just for that period and less . The details are going to be given from the entries available within the register available with the sub-registrar.

How to obtain an EC?

Given below is that the procedure to get an EC.

• First and foremost, download the Form 22. Affix it with Rs 2 non-judicial stamp and address to the Tahsildar, giving an attested copy of your residential address and therefore the purpose that the certificate is required.
• Provide the small print of ownership like correct survey number and place where the property is situated. It is vital that the amount and full description of the property are mentioned clearly within the application.
• The requisite fee needs to be paid. The fee is to be paid consistent with the amount of encumbrance. The encumbrance year commences from April 1st of a calendar and closes on March 31st, of subsequent civil year . The EC is additionally usually provided within the regional language. An English translation could also be obtained by paying a further fee.
• the appliance should be submitted to the jurisdictional sub-registrar’s office, under which the property is registered.

Time Duration?

The time taken to get an EC is typically 15-30 working days.

While an EC may give the small print of the encumbrance on a property, there are certain documents that are exempt from being registered at the sub-registrar’s office. As such, these won't appear within the EC. Hence, it's advised that the customer obtains both the EC and possession certificate as a symbol of complete ownership of the property