A property does have its Encumbrance Certificate which holds as proof of its existence, and if you’re going to buy a property then it is the EC which gives you details about the property from its history.
In India, if you’re on task to get a new property to be brought, then one should get the EC of the property, and this is one of the important documents that is being asked by the property owner who wants to own the property.
As well, the EC stands as a mandatory document for applying for any kind of Loan, as an official proof of the existence of property.
What is an Encumbrance Certificate
Encumbrance Certificate is shortly referred to as an EC document by every document writer or property dealer, and the meaning of EC is a Claim on Property or Assets.
The Encumbrance does show the legal claim on the property which gives sole ownership of the owner towards the said property with a history of transfer from the previous owner, and if the property has been attacked by any court order, or legal dispute, or mortgaged or any such will be clearly mentioned in an EC
An Encumbrance does show a clear picture of the property, which lets you know if the property is free from a dispute and it is clearly free to be bought, and the EC can be taken from sub-registrar officers as well online based on the state government official portal.
How to Apply for an Encumbrance Certificate
The process of EC is very simple and anyone having the document number or property details of any property can ask for the Encumbrance document from the sub-registrar office.
There is no restriction for EC to be handed over to others, as it just reflects the details of history of property.
- Visit the local sub-register office of your area
- Submit a Form No22 filled with all asked details in detail
- Two non-judicial stamps on the application need to be fixed
- Provide the complete property address for which EC is required
- The reason for the EC to be mentioned in detail
- Survey Number and the Place of the property to be provided
- Details of science how many years EC is required by the owner
- A Proof of your ID card along with residential proof to be attached
- Once the application is filled and attached to these respective details, it needs to be submitted to the sub-registrar office.
- Thus on request, the EC will be generated by the SRO within 48 hours and the owner can take their EC every next day.
- An application fee is also applicable to the property EC which might be below 100 Rs based on the application charges.
Apart from the above process, many state governments allowed to check the property EC in online, do check the following
What is Encumbrance Certificate Form 15 or Form No 16?
The Encumbrance Certificate is issued in form as Form No 15 or Form No 16 by the Sub register office, and thus here are details of Form 25 and Form 16 you did receive on request for EC.
Form No 15: The EC on Form 15 does have the details in regards of Lease, Mortgage, Sale, Partition, Gift and etc, and if a property is registered with this details in the registration office, the Form No 15 will be issued which is majorly asked by the buyer or the loan provider for clear details.
Form No 16: This is a Nil document that has been issued by the sub-registrar office as if the Encumbrance Certificate on Form NO 16 is issued, and it clearly indicates that the property has not been into any dispute or transaction since the EC has been requested, where the EC on Form No 16 is also referred to as Nil Encumbrance Certificate.
What Does an EC Contain?
There is important information that has been found in an Encumbrance Certificate of a property, and in the single sheet of paper called EC, the owner or buyer can find out what all details have been modified or done with the property.
Kindly note this below information which you can easily find in an EC.
- The name of the applicant who has applied for the Encumbrance Certificate
- The Property Details that were asked form No 22 will be mentioned in detail
- EC period can be seen so that it will be assured that since this year the details are on the sheet
- The details of the previous owner and their history with document number can be seen
- The number of transactions that are made on Property will be clearly mentioned here
- The names of buyer and seller with their respective year and communication address will be mentioned
- Does the property is in dispute or mortgage or gift will be clearly highlighted at last
- EC to be taken if you’re ready to buy an open land or build property for your better safety
Why do we require an Encumbrance Certificate for property?
If you’re a new buyer of property, then rather listen to the words of someone around. An Encumbrance Certificate from the sub register office will give you the history of the property. Such that as a new buyer you will be clearly aware of cleanliness of property and its associated links with previous owners.
Can Encumbrance Certificates Be modified?
No, the Encumbrance Certificate is only provided by the sub-registrar who is solely responsible for registering the property. This is documented in the government sub-registrar office and an EC does not have an option to be modified once the original document has been submitted. There might be typo errors with the name, but the document number will be clear which has nowhere been modified.
Does Banker ask for an Encumbrance Certificate?
Yes, if you’re applying for a mortgage or home loan from any private or government bank. The important document they ask for is an Encumbrance Certificate along with the history of the document.
Based on the Encumbrance provided, the documents of links with the previous owner will be asked by the banker, such that they verify the details mentioned in EC are paper with the document being supplied as proof to get their loan sanction.
Does Encumbrance Certificate Requirement for Home Loan?
Yes, EC in Tamilnadu is an important document that is used as a proof for ownership of property. This must be an attached document if one is going to buy or sell the property, such that it gives the respective person a clear view of property title.
How Long Does an Encumbrance Certificate Does Last?
For any home loan or property selling, the details of the last 10 to 15 years of the Encumbrance Certificate are being requested. Usually, the EC is proprietary from the start of the title when it was owned by the very first owner. Having an EC older than 15 years will give you a clear title for a bank loan and as well to buy the property.