Non Encumbrance Certificate: Apply for Non EC Online, Download

Non-Encumbrance Certificate:- In the real estate industry, one of the most crucial documents is a non-encumbrance certificate. It is a necessary document to have when applying for a loan from any financial institution in the nation, together with the occupancy and completion certificates.
Read the article below to learn more about non-encumbrance certificates, their significance, and how to obtain one online is provided here.

Non Encumbrance Certificate

Non Encumbrance Certificate 2024

Any charge placed on an asset as a security is referred to as an encumbrance in the context of real estate. For instance, if a home is purchased with advances, the lender will charge fees for this asset to serve as collateral for the loan. Moreover, the property is still mortgaged to the lender for the term of the loan. When purchasing or selling a home, the applicant must ensure that the subject property is clear of debt and obligations before accepting an advance from a lender secured by the property. A non-encumbrance certificate is a formal deed that documents every transaction about a certain property over a predetermined time frame.

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Non-Encumbrance Certificate Details in Highlights

Name of the schemeNon Encumbrance Certificate
Issued bytahsildar
BeneficiariesPeople of India
BenefitIt shows whether a particular property is free from any kind of legal and financial liabilities or not
Official Website

Importance of having a Non Encumbrance Certificate

One of the most crucial documents needed when purchasing or selling real estate is a non-encumbrance certificate. In addition to completion and ownership certificates, it is a necessary document that borrowers must provide to a lender to be approved for a loan. Therefore, when you apply for a loan for any type of property, lenders will request this deed to make sure the applicant is the rightful owner and that there are no outstanding debts on the property. If a transaction is completed without the issuance of a no-encumbrance certificate and there is an existing charge on the property, the buyer may be responsible for all associated costs and legal obligations.

Precautions to be taken before purchasing or selling a property

Before purchasing or selling a property, people must ensure that it is free of financial or monetary charges. Before a new loan can be taken out, any existing loans that were approved against the asset or that are mortgaged to a lender must be paid off and free title must be proven.

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Benefits of Non Encumbrance Certificate

In real estate transactions, an encumbrance certificate is an essential legal document that confirms the ownership and legal status of a property. It can be used for a number of things, such as ownership verification, transaction history documentation, legal due diligence, loan processing facilitation, fraud prevention, and tax assessment, lawsuit, and legal claim information. In addition to being crucial for guaranteeing that a property has a clear and marketable title, the certificate is also important for loan approvals, inheritance procedures, and real estate transactions.

Fees for Non-Encumbrance Certificates

Non-EC fees are determined by the size of the property and the length of time the certificate is being used, and they differ between states. In some jurisdictions, applicants must pay a service fee in addition to an application cost, which can range from Rs. 1 to Rs. 200.
An encumbrance certificate is normally issued with data for a maximum of 12 years for a fee. Hence, candidates may also ask for a longer time frame.

Types of non-encumbrance certificates

There are two types of non-encumbrance certificates.

Form 15: If there were any encumbrances on this property at the time the petitioner requested an EC, Form 15 was issued.

Form 16: When the property in question is free of any liens imposed by lenders, a Form 16 or NIL Encumbrance Certificate is granted. The homeowner has free ownership of it, and there won’t be any fees applied to it for a predetermined period. These kinds of properties might be financed again by any financial institution in the nation.

Application Process of Non Encumbrance Certificate

If you are willing to apply for a Non-Encumbrance Certificate, follow the steps below for the application process.

  • Go to the state-wise official website of the Non-Encumbrance Certificate.
  • To find the Government Forms area, use the sitemap.
  • Now click on the Stamps and Registration option.
  • After that click on the Application form for the Encumbrance Certificate
  • Now download Form 22, and complete it with the necessary data. Also, Put a Rs. 2 non-judicial stamp on it.
  • A written proforma requesting assistance in the process must also be submitted.
  • Provide specifics about your property, such as the entire address found in the registration deed, as well as any measurements and boundaries so that nearby properties can be found.


How many states offer non-encumbrance certifications online?

Only a few states like Telangana, Andhra Pradesh, Puducherry, Odisha, Tamil Nadu, and Kerala offer non-encumbrance certifications online. A handwritten encumbrance certificate is still available in all other states and can be obtained from the sub-registrar’s office.

What does encumbrance certificate mean?

An encumbrance certificate is an essential legal document that gives details on a property’s legal and financial standing.

Who issues the encumbrance certificates?

The Sub-Registrar’s office issues encumbrance certificates, which are proof of ownership and free title.

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