An Encumbrance Certificate is a crucial document in any sale or purchase of the real estate. Be sure there are no outstanding debts on the property you intend to purchase. The key documents are thoroughly explained in this article. A certificate of no encumbrance demonstrates that the subject property is free and clear of all financial and legal obligations. Details of every transaction on the property are included in this document. It highlights any outstanding loans or mortgages secured by the property that has not been paid off.
Table of Contents
What is an Encumbrance Certificate
The lender will attach a “Lien” or a charge to the property if it was acquired with a mortgage or if it had been pledged. As a result, the borrower/owner of the property will be prevented from selling the home until the mortgage is fully repaid.
You can use an Encumbrance Certificate, a legal document, to determine whether the property is subject to any liens or other obligations. Visit the relevant Sub-Office Registrar to obtain an EC.
EC Certificate Details in Highlights
|Types||Form 15 and Form 16|
|Objective||To check whether the property is subject to any liens or other obligations|
|Online Application Process||Yes|
|States having Online EC Application Facility||Andhra Pradesh, Odisha, Kerala, Puducherry, Tamil Nadu, and Telangana|
Why is a Encumbrance Certificate Required?
Be sure the property has a clear title before making a purchase. You can ensure that the property you want to acquire is free from such monetary or legal obligations by obtaining an encumbrance certificate. It’s crucial to fix any charges you find on the EC before you make the transaction. Also, it will assist you in determining whether any current owners have a legitimate claim to the property. In addition, if you intend to apply for a loan to buy a property, one of the documents you will need to provide your lender with is an EC.
Encumbrance Certificate Types
ECs come in two different forms. As follows:
- Form 15
- Form 16
If a property has any encumbrances during the time for which the applicant has requested a certificate, the sub-office registrar issues an encumbrance certificate on Form 15. If a property has not registered any encumbrances during the period for which the applicant has sought a certificate, a nil-encumbrance certificate is issued on Form 16 by the same office.
What is a Nil Encumbrance Certificate?
The duration for which you require the information will be requested from you when you file for an encumbrance certificate.
A “Nil Encumbrance Certificate” will be given if no debts are owed on the property within the stated time frame. This indicates that during that time, no lender had a lien placed on the property.
How much does it Cost to Apply for an Encumbrance Certificate?
Each state has a different application fee for obtaining an Encumbrance Certificate. It depends on where the property is located and which state is in charge of governing it. Nonetheless, some of the well-known states charge the following costs to obtain an EC:
|Andhra Pradesh and Telangana (as on 17 August 2013)||Search and issue of certified EC copy- Rs.200 per certificate Search and issue of EC copy up to 30 years- Rs.200 per certificate More than 30 years- Rs.500 per certificate|
|Kerala (As on 31 March 2018)||Single search and copy- Rs.10 Extra sheets (over first 2 sheets used)- Rs.10 per sheet|
Note: Please consult your local authorities for the most recent fees and charges.
How to Complete an Online Encumbrance Certificate Application
The procedures for requesting an EC vary from state to state. A few states in the country allow applicants to submit an EC application online. If your state does not allow online applications for Encumbrance Certificates, you must go to the appropriate Sub-registrar’s Office.
The steps to apply for an EC online are listed below:
- Choose the option to apply for an EC on the State official website for land registration.
- In the application for encumbrance certificate window, complete all the needed fields, then click save/update.
- Choose “Calculate Fee” after entering the search period for which you need the EC.
- You will be taken to the “Acknowledgment” window after paying the required application fee and filing your application. You can print the acknowledgment by selecting “See Acknowledgement” from the menu.
- An inspector from the land records department will conduct an inspection and look up all information regarding the given property for a while.
- An EC will be produced with all transactions that took place within the specified period when the inspection is finished. A nil EC will be provided if there were no transactions throughout the time.
Which States Print Online Encumbrance Certificates?
With the exception of a few states, ECs are typically issued physically across the entirety of India. One of the states that offer encumbrance certificates online is Andhra Pradesh. Other states that do so include Odisha, Kerala, Puducherry, Tamil Nadu, and Telangana.
On June 10, 2020, the Karnataka government decided to move back to the offline process for the issuance of encumbrance certificates and other property-related documents due to technical difficulties with the state’s online system, Kaveri Online Service. The administration also allowed farmers in Karnataka to apply later due to the website’s malfunction. The issue also disrupted property registrations in Bengaluru, the state’s capital.
How to Submit an Online Encumbrance Certificate Application
To Submit an Online EC Application follow the below steps:
- Go to the appropriate Sub-Office. Registrar’s (the jurisdiction depends on the location of the property).
- Send the properly filled out Form 22.
- You’ll need to enter information like the buyer and seller’s names, the location of the property, the kind of document you’re looking for (in this example, an EC), etc.
- At the counter, pay the appropriate fee.
- After your application has been submitted successfully, you will receive a reference or acknowledgment number. This number can be used to check the application’s status online.
How to Check the Status of an Encumbrance Certificate
To Check the Status of an EC follow the below steps:
- On each page, there are different procedures to follow in order to check the progress of your EC application. You can check the status of your application on the majority of government websites where you can submit an online Encumbrance Certificate application.
- For instance, users of the official Kerala Government Website are able to check the status there. Following are the steps:
- In the “Encumbrance Certificate” menu item under the “Certificate” menu, select “EC Status.”
- Enter the captcha, input the Transaction ID that was given to you when you submitted the application, and then click “Check Status.” You can download the certificate in PDF format after the certificate is shown on the screen.
When Can I Expect to Get an Encumbrance Certificate?
As was already mentioned, different locations have different procedures for obtaining an EC. After 15 to 30 days after submitting a physical application for an EC at a Sub-Office, Registrar’s you will receive the certificate.
Yet, you will receive an EC more quickly if you apply online. Processing time for online applications is typically 2 to 3 working days.
How to Download a Property’s Encumbrance Certificate
As previously noted, you will be able to download the file after it is generated if the relevant State Government website enables you to track the status of your EC application online.
Documents Required to Get an Encumbrance Certificate
Some of the documents you would need while applying for an EC are:
- Property Details and its title deed details.
- Property registration document.
- The property sale deed/gift deed/partition deed/release deed if a deed has been executed previously.
- The deed number upon registration contains the date and book number along with the signature of the applicant.
- Address proof of the applicant.