What is Encumbrance Certificate?
An Encumbrance Certificate (EC) is a document in property transactions, providing proof that a property is either free or not from any monetary or legal liabilities. For homebuyers, lenders, and sellers alike, this certificate helps ensure transparency in property dealings.
What is an Encumbrance Certificate?
An Encumbrance Certificate is an official document issued by the relevant government authority. It confirms that the property in question does not have any financial encumbrances, such as mortgages, liens, or legal disputes, registered against it during a specified period.
What are the types of Encumbrance certificates?
There are two types of Encumbrance certificates as follows:
1) Encumbrance certificates Form 15
If a property has any encumbrances during the period for which the applicant has sought a certificate, the sub-registrar’s office issues an encumbrance certificate on Form 15. Typically, Forms 15 will contain each piece of information pertaining to inheritance, sale, purchase, lease, mortgage, gifting, relinquishment, partition of the property in question.
2) Encumbrance certificates Form 16
If a property has not registered any encumbrances during the period for which the applicant has sought a certificate, the sub-registrar’s office issues a nil-encumbrance certificate on Form 16.
Why is a nil-Encumbrance Certificate Important?
Following are the reasons why a nil EC in Form 16 is important:
Ensures Clean Ownership: The nil EC certifies that the property is free of encumbrances, enabling buyers to verify the ownership status.
Required for Loans: Lenders often require the nil EC before sanctioning a Home Loan to ensure the property being mortgaged is not already under dispute or encumbrance.
How much time does it take to get encumbrance certificate?
While it might take between 15 and 30 days to get an EC offline, the document is issued in matter of 6 to 7 days in states where the certificate is issued online.
What is the period for which encumbrance certificate can be taken?
An encumbrance certificate could be taken for a period ranking between 12 and 30 years.
Certificate of Encumbrance on Property: How to Obtain it offline?
Obtaining an Encumbrance Certificate involves the following steps:
Application Submission: Submit an application form at the local sub-registrar’s office, along with the property details and the required fees.
Documents Required: Provide property ownership documents, title deeds, purpose of application and any relevant identification and address proofs.
Processing Period: The authority verifies the property’s history and issues the EC in Form 15 or Form 16.
Is it available online?
In many states, one can apply for an EC online. Listed below are the websites addressed of those states that provide EC online.
1) Andhra Pradesh – https://registration.ec.ap.gov.in/ecSearch
2) Tamil Nadu – https://tnreginet.gov.in/portal/
3) Telangana – https://registration.telangana.gov.in/ec.htm
When do You Need a nil Encumbrance Certificate?
While Purchasing Property: To ensure the property is free from any liabilities
For Loan Applications: To meet lender requirements when availing of a Home Loan
For Property Transfers: To provide proof of a clear ownership history during property sale or transfer
A nil Encumbrance Certificate (EC) is a document that ensures that the property is free from any financial or legal disputes. Whether you are purchasing, selling, or mortgaging a property, obtaining an EC ensures a smooth and transparent process.
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