Ensure a Clear Property Title with Encumbrance Certificate in India

Introduction

• An Encumbrance Certificate (EC) is a legal document in India that certifies the ownership of a property and confirms that there are no financial or legal liabilities on it. 
• It is an important document that is often required during property transactions to ensure that the property being bought or sold is free of any encumbrances.

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Types of Encumbrance Certificates

In India, there are two types of Encumbrance Certificates (EC):

1. Form 15: Form 15 EC provides information on encumbrances and transactions for a particular period of time, usually for the past 15 years. It contains details such as the name of the property owner, the type of property, and any encumbrances, such as mortgages or liens, registered against the property during the specified period.
2. Form 16: Form 16 EC provides details of all the transactions and encumbrances on property since its inception. It is a comprehensive document that lists all the transactions on the property, including sale deeds, gift deeds, wills, and mortgages, among others.

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What type of information is available in an Encumbrance Certificate?

Here are the types of information you can expect to find in an encumbrance certificate:

1. Property details: The encumbrance certificate will have details about the property, such as the location, survey number, and extent of the land.
2. Ownership details: The certificate will have information about the current owner of the property and their legal status in relation to the property.
3. Liabilities: The encumbrance certificate will list any pending dues or financial liabilities on the property, such as mortgages, loans, or taxes. It will also provide information on any legal claims, disputes or pending litigation relating to the property.
4. Transactions: The encumbrance certificate will contain details of all the transactions that have taken place on the property, such as sale deeds, gifts, leases, and mortgages.
5. Date of the certificate: The encumbrance certificate will also have the date when it was issued and will be valid for a specific period of time.

How to Get an Encumbrance Certificate Online?

In India, getting an encumbrance certificate online can be done through the following steps:

1. Visit the official website of the Department of Stamps and Registration of your respective state or union territory. Each state or union territory may have its own website for this purpose.
2. Look for the option to apply for an encumbrance certificate online. This option may be available under the “Services” or “Online Services” tab on the website.
3. Register for an account on the website by providing your details, such as name, address, mobile number, and email ID.
4. After registration, log in to your account and fill in the required details, such as the property details and the time period for which you require the certificate.
5. Pay the required fee for the certificate online. The fee may vary depending on the state or union territory.
6. Submit the application online.
7. After submitting the application, the concerned authorities will verify the details and issue the encumbrance certificate online.

Kaveri Online Encumbrance Certificate

• Step 1: Visit the Kaveri Online Services website at https://Kaverionline.karnataka.gov.in.
• Step 2: Click on ‘Register as New User’ and fill out the user registration form.
• Step 3: Tap on ‘Register,’ and you will soon receive an activation code on your email address and mobile number along with a password to login.
• Step 4: Now, enter the code and click on the ‘Activate’ button.
• Step 5: Login with your credentials and change the password. Now, select the ‘Online EC’ option from the ‘Services’ section.
• Step 6: Select the duration of the property registration and provide the required property details and click on the ‘Send OTP to View Document’ checkbox.
• Step 7: Enter the OTP sent to your registered mobile number and click on ‘View Document’ to view or download the property EC.
• Step 8: To download the EC, select the ‘Check to apply for digitally signed EC’ checkbox and tap on ‘View Document’.
• Step 9: A PDF document will be displayed with a ‘Proceed’ button. Click on the button to download the PDF and pay the applicable fees.
• Step 10: Finally, a receipt will get generated after making the online payment. Click on the ‘Refresh Payment Status’ button.

How to Get an Encumbrance Certificate Offline?

In India, obtaining an encumbrance certificate offline can be done through the following steps:

1. Visit the office of the concerned Sub-Registrar or Registrar of your district, where the property is located.
2. Get the application form for the encumbrance certificate from the office, or you can download it from the official website of the Department of Stamps and Registration of your respective state or union territory.
3. Fill out the application form with all the required details, such as the property details and the time period for which you require the certificate.
4. Attach the required documents, such as proof of identity, proof of ownership, and the prescribed fee for the certificate. The fee may vary depending on the state or union territory.
5. Submit the application form and the documents to the concerned authority.
6. After submitting the application, the concerned authorities will verify the details and issue the encumbrance certificate offline.

Documents Required to Apply for EC

To obtain an Encumbrance Certificate (EC) in India, the following documents are typically required: 

1. Application form: The application form for an EC needs to be filled with details such as the property address, the duration for which the certificate is required, and the purpose of the certificate.
2. Proof of identity: Any government-issued identity proof such as an Aadhaar Card, Voter ID, PAN Card, or Passport.
3. Property documents: Documents that prove ownership of the property, such as Sale Deed, Gift Deed, or Partition Deed.
4. Tax receipts: Receipts of property tax payments, showing that there are no pending dues.
5. NOC: No Objection Certificate (NOC) from the bank or financial institution in case of any existing loans or mortgages.

What are the Eligibility Criteria to apply for EC in India

1. In India, there are no specific eligibility criteria to apply for an Encumbrance Certificate (EC). Any person who owns or has an interest in a property can apply for an EC.
2. However, the applicant should be able to provide the required documents, such as proof of identity, property documents, and tax receipts, as mentioned earlier.

Benefits of Encumbrance Certificate

The Encumbrance Certificate (EC) is an important document that serves as proof of ownership and legal status of a property in India. It is mainly used for the following purposes:

1. Property transactions: An EC is required while buying or selling a property, as it provides information about any existing or previous encumbrances such as mortgages, liens, or any other legal claims on the property. For more details, refer to our comprehensive guide on Property Paper Verification in India

1. Applying for loans: Banks and financial institutions require an EC to verify the ownership and legal status of a property before approving a loan or mortgage against it.
2. Legal disputes: An EC can be used as evidence in legal disputes related to property ownership, as it provides a history of transactions and encumbrances on the property.
3. Government approvals: An EC may be required to obtain various government approvals, such as building permits or approvals for land development.

What is Nil Encumbrance Certificate?

1. A Nil Encumbrance Certificate (NEC) is a certificate that states that there are no encumbrances registered on a particular property during a specified period of time. It is also known as a “no-encumbrance certificate”.
2. To obtain a Nil Encumbrance Certificate in India, one needs to submit an application to the local Sub-Registrar or Registrar office along with the required documents, such as proof of identity, property documents, and tax receipts. The office will then verify the records and issue a certificate stating that there are no encumbrances registered against the property during the specified period.
3. A Nil Encumbrance Certificate is usually required while applying for a loan or mortgage against a property or while purchasing a property. It ensures that the property has a clear title and is free from any legal claims or liabilities.

How long does it take to obtain an Encumbrance Certificate?

The time taken to obtain an Encumbrance Certificate in India varies depending on the state, type of certificate, and mode of application, but it usually takes between 7 to 15 working days.

Which States Issue Online Encumbrance Certificates?

Several states in India now offer online services to apply for and obtain Encumbrance Certificates (EC) online. Some of these states are:

1. Andhra Pradesh
2. Telangana
3. Tamil Nadu
4. Kerala
5. Karnataka
6. Maharashtra
7. Gujarat
8. Odisha
9. Himachal Pradesh
10. Punjab
11. Haryana

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Conclusion

In conclusion, obtaining an Encumbrance Certificate is a crucial step in ensuring that a property has a clear title and is free from any legal claims or liabilities. With the availability of online services in many states, obtaining an EC has become easier and more convenient than ever before. It is important to check the specific requirements and procedures in your state or union territory and obtain an EC to protect your property investment.

Frequently asked questions about Encumbrance Certificate.

Q 1. What is the validity period of an Encumbrance Certificate (EC) in India?

Ans. The validity of an EC varies depending on the state or union territory where the property is located. In some states, the EC is valid for 1 year, while in others, it is valid for 3 or 5 years. It is advisable to check with the local Sub-Registrar or Registrar’s office or the official website of the Department of Stamps and Registration for detailed instructions.

Q 2. Can an EC be obtained for a property that is not registered?

Ans. No, an EC can be obtained only for registered properties. It is necessary to have the property registered with the Sub-Registrar or Registrar’s office to obtain an EC.

Q 3. Can an EC be obtained for a property that is under litigation?

Ans. Yes, an EC can be obtained for a property that is under litigation. However, it is important to note that the EC will reflect the existence of the litigation and any orders or judgments related to it.

Q 4. Is it possible to obtain an EC for a property located outside India?

Ans. No, an EC can be obtained only for properties located within India. However, if the property is registered in the name of an NRI (Non-Resident Indian), it is possible to obtain an EC by submitting the required documents and authorizing a representative in India to obtain the EC on their behalf.