If you’re planning to shop for a home, you have to have come upon the ‘Encumbrance Certificate (EC)’. While preparing for the massive buy via bringing collectively all required documents, make sure you don’t miss an Encumbrance Certificate of the specific property.
What is an Encumbrance Certificate?
An Encumbrance Certificate (EC) is an important record used as proof of unfastened title/ownership of a property. The record is needed whilst shopping or promoting assets or whilst making use of a domestic mortgage or mortgage in opposition to assets to verify that the unique property is freed from any financial or criminal liabilities.
The word “Encumbrance” refers to any financial or non-financial claims on a property apart from the title-holder of the property.
Why is the Encumbrance Certificate Important?
The importance of an EC is expressed in the following points:
- Buying a assets is big monetary investment making it important for clients to test for any encumbrances as it can switch to them collectively with the owner of the asset. Getting an “Encumbrance Certificate” of a property gives a customer assure of the reality that the assets does now no longer have any economic or non-economic liabilities which encompass liens, amazing loans, and leases.
- Since the file is likewise supplied on the time of mortgage towards assets and domestic mortgage application, it’s far important that clients accumulate the file to now no longer simplest stable the criminal call of the assets but moreover to make certain that the customer can also additionally be eligible for the loan.
Other occasions wherein the Encumbrance Certificate might be required are:
- To get mutation of property (Khata Registration / Khata Transfer / Patta) done, the files are submitted
- If the specified assets or land tax isn’t paid for added than 3 years, the certificate are furnished to the Village / Panchayat Officer to update the land tax records
- To withdraw PF for assets, buy, or home construction
How to Obtain Encumbrance Certificate?
The EC for assets is supplied at the sub-registrar’s workplace in which the assets have been registered. To affirm the transactions that have taken region concerning assets-
- Application is to be made to the registration workplace for an EC, collectively with an attested copy of deal with proof, statistics approximately the assets, its name details, and the charge relevant for obtaining the Certificate.
- The officer will take a look at the Indexes for statistics withinside the particular period.
- An Encumbrance Certificate with the statistics of the transactions in a sure period, or if no transactions have taken region, a Nil Encumbrance Certificate (NEC), is issued.
- The certificate is issued 15-30 days from the date of the application.
- The styles of the packages and certificates are specific withinside the annexures to the guidelines of the Registrations Acts of the respective states. Usually, the software is made in Form No. 22, and the EC is issued in Form No. 15, NEC in Form No. sixteen of the respective national rules.
What is a Nil Encumbrance Certificate?
When you follow for an Encumbrance Certificate, you’ll be approached to decide the length for that you want the data.
If there aren’t any prices set at the assets at some stage in the referred to length, a “Nil Encumbrance Certificate” may be given. This means that no moneylender has set a lien at the assets at some stage in that length.
What does an Encumbrance Certificate Include?
An EC for a selected time body consists of the listing of all registered recognized with the assets that befell throughout the referred time span. People can get an Encumbrance Certificate of assets for as much as a time of 30 years.
Note that, in case you are asking an EC for a selected duration, you may get the subtleties only for that duration and now no longer more. The subtleties might be given from the sections reachable withinside the check-in reachable with the sub-check in.
How to Apply Offline?
In states wherein ECs aren’t given online, the candidate has to go to the sub-recorder’s workplace wherein the belongings being noted are enlisted. Write software on undeniable paper, unmistakably referencing the facts you search for and post it along well filed Form 22. You have to pay a nominal fee for your software to get the EC. The fee could change, contingent upon the duration for which the EC is regarded.
How to Apply Online?
The steps to apply for an Encumbrance Certificate differs from one kingdom to another. A few states withinside the united states allow clients to use an EC online. If you can not observe for an Encumbrance Certificate online in your kingdom, you want to visit the respective Sub-Registrar’s Office.
Below is the approach to use for an Encumbrance Certificate online:
- Visit the respective State’s professional land registration internet site and pick the choice to apply for an EC.
- Enter all the required fields on the software for the encumbrance certificate window, then click on save/update.
- Enter the search length for which you require the EC and then click on on ‘Calculate Fee’.
- Upon paying the desired software price is paid and is filed, you’ll be directed to the ‘Acknowledgment’ window. Click ‘View Acknowledgement’ and you’ll be able to take a print of the acknowledgment.
- An inspection is probably performed via an inspector from the land data branch and check all data of the said belongings for a length.
- Post the crowning glory of the inspection, an EC can be issued will all transactions that passed off at some point of the desired length. If there has been no transaction at some stage in the length, then a 0 EC can be issued.