What is an Encumbrance Certificate?

The dictionary meaning of the word “encumbrance” is, ‘a claim on property or assets’ or ‘a mortgage’. An encumbrance is a legal claim on a property that affects the owner’s ability to transfer the ownership of the property. Encumbrance means whether the properties have any lien on them, whether attached by the court, whether mortgaged or sold etc. An encumbrance certificate is evidence that the property in question is free from any monetary and legal liabilities. An encumbrance certificate contains details of all transactions done on the specific property.

How to obtain an EC?

You can Obtain your EC by

• Online
• Offline
  • • Visit your respective Sub-Registrar’s Office
    • Submit Form 22 with all details with details such as seller name, buyer name, details of the property, document type, etc.
    • Pay the necessary fee
    • You will receive a reference number after the successful submission. This detail can be used to track the status of the application online

Documents Required for Obtaining Encumbrance Certificate

• • Application form
  • Attested copy of address proof
  • A photocopy of any previously executed deed of the said property such as sale deeds, gift deeds, partition deeds, release deeds, etc.
  • Details about the property and its title details
  • The registered deed number, date, book number, volume/ CD number, and signature of the applicant should be affixed with it.
  • Period for which the EC is required
  • The purpose for which the EC is applied for
  • Copy of Power of Attorney, in case of application, is made by the attorney holder
  • Aadhar card
  • Property card if available

Importance of Getting an Encumbrance Certificate

• The Encumbrance Certificate is a crucial document to get any land or property in India because it may be a proof of ownership title. Therefore, EC is required for the transfer of property.
• Apart from the acquisition of property, an encumbrance certificate has got to be produced when applying for a loan against the property during a bank or financial organization because it confirms that the property is free from any legal disputes.
• This certificate requires updating the property tax record if the property or property tax isn’t purchased quite three years.
• The Encumbrance Certificate is a crucial document for committing a mutation of property (Khata Registration/Khata Transfer/Patta).