How To Apply For An Encumbrance Certificate Online In Karnataka 

If you are buying or selling property, you should obtain or possess an Encumbrance Certificate from the office of the sub-registrar. If you don’t have the required time to go and then get the certificate, you are at the right place. With the help of this article, we will help you navigate the intricacies of obtaining an Encumbrance Certificate online in Karnataka. 

Introduction to Encumbrance Certificate

An Encumbrance Certificate (“EC”) is a legal document that gives the prospective Buyer complete knowledge about the property and confirms that the Buyer is getting a good and marketable title to the property. In simple words, this means that no mortgages, charges, loans, or liens exist on the property. This is done to preserve the interests of the Buyers, as the person or institution against whom the encumbrance is registered may bring any claim to the property at any time. 

Importance of an Encumbrance Certificate or Why is an Encumbrance Certificate Needed in Karnataka?

Some reasons make a property transaction mandatory and obligatory for the parties to obtain an Encumbrance Certificate. The reasons are as follows:

• Ownership of the Property: An encumbrance Certificate can establish ownership of the property, as the EC holder is the owner under whose name the title deeds to the property are registered.

• Record of Property Tax: If the property tax has not been paid for 3 years, an EC must be submitted to either the Village or Panchayat office to update the property taxes. 

• Legality of the Property: Every property must have a good and marketable title free from any encumbrances. Therefore, the genuineness of the property can be established with the help of an EC.

• Approval of the Loans: If the Proprietor is obtaining any kind of loan on the property, banks will be required to examine the EC to confirm that there are no encumbrances on the property. 

• Prevention of Fraud: An EC prevents fraud and fraudulent activities by showing a clear picture of the property through its lens. 

• Security: An EC is one of the reliable documents for Buyers as it gives them the protection that the property they are purchasing is free from any encumbrances. 

• Higher Resale Value: We have already discussed the importance of an EC from a Buyer’s perspective. A property with a clean EC Record derives a higher resale value, as more customers can be attracted to it. 

• Establishes Inheritance: An EC can help establish the property owner and the chain of legal heirs. 

• Mutation: The Buyer is required after buying the property to register or record the transfer of the property with the government officials and this process is known as a Mutation Record. 

Eligibility Criteria to Obtain an Encumbrance Certificate

We know about the importance of an Encumbrance Certificate, but not everyone can obtain it. Some authorized persons can only apply to get an EC. These are the below-mentioned list of persons:

• The Owner of the Property: The Owner of the Property or their legal heirs will be the successors of the property and they will be the authorized applicants for obtaining an EC. 

• Prospective Buyers: These are those persons who want to buy the property to satisfy themselves and absolve themselves from any future unforeseen liabilities. Prospective Buyers can apply for EC. 

• Under a Power of Attorney: The persons who have obtained authority under a POA from either the legal owner or the prospective Buyer can be an applicant for obtaining an EC. 

What are the documents required to Obtain an Encumbrance Certificate?

The applicant is required to keep a list of documents ready while applying for an EC. The list of documents runs as follows:

• Application Form to apply for an EC
• Aadhar Card details of the applicant
• Property Details 
• Property Card (if available)
• Attested address proof of the property for which the application for an EC is being filed
• Copies of the Previous documents executed on the property. It can be a Sale Deed, Transfer Deed, Partition, Release Deed, etc, along with the registered deed number, date, volume number, and book number with the signature of the applicant. 
• The purpose for which the application for EC is filed
• The period of the EC
• If the application is drafted/filed by an attorney holder, then a copy of the Power of Attorney (POA) needs to be attached.

Constituents of an Encumbrance Certificate

We are well-versed with the importance and the benefits attached to an Encumbrance Certificate. This an important point to be noted as to what the constituents of an EC depict the true picture of it. So, let’s understand the above.

• Property Owner Name along with their Details
• Description of the property as mentioned in the Sale Deed
• Documents and Transactions registered with government officials
• Loan Details (if any)
• Specific Period Transactions on the property 
• Details of the transaction, its date, book number, number of the document, book number, and the party’s names. 

Types of Encumbrance Certificates

There are three Encumbrance Certificates and these are used for resolving different types of purposes; these are:

• Form 15: This type of EC became available on the Kaveri Portal after 2003. With this Form, the applicant can ask the officials to request a specific period, e.g., 10 years or 15 years, etc. 

• Form 17: This type of EC is used to find the property with the owners’ names. This form is generally not considered accurate because there may be different properties with different names. 

• Form 16: This type of EC is issued for the property where there have been no transactions on the property since 2003 to date when the certificate has been obtained. Sometimes this certificate comes up when there has been an error in the search or there are no entries to be displayed and the property is free from any encumbrances with a good and marketable title. 

Online Process of Obtaining an Encumbrance Certificate or How to Apply for an Encumbrance Online in Karnataka?

After 2003, the process of obtaining an EC became online. The steps for applying to obtain an EC is as follows:

• Visiting the Kaveri Portal: The first step in obtaining the EC through Online mode is to visit the Kaveri Portal. 

• Registering on the Website: The second step in obtaining an EC is to register on the Kaveri Portal. In simple words, this means creating an account on the said portal and filling in personal details such as PAN Card, Aadhar Card, Contact Details, and Password recovery questions. 

• Selecting Services: The next step in this process is to select the type of services i.e., Online EC Service, from the list of available services. Additionally, the applicant is also required to select the type of the property and thereby enter and upload its details. 

• View Document: After submitting the documents, the applicant is required to click on the view documents after inserting the OTP received on the registered mobile number. 

• Payment: After being assured that the details entered by the applicant are correct and ready to be submitted, the applicant is required to pay the fees (which have been discussed in the sections below of this Article).

• E-Signature: As the last step of the procedure, the applicant is required to enter their e-signature on the application by validating their Aadhar number. 

Fees or Charges to Obtain an Encumbrance Certificate

The applicant is required to pay a certain fee to obtain the EC. These fees are:

• The Application Fee for EC is Rs. 5
• The Search Fee for EC for one year is Rs. 30
• The Search Fee for an additional year is Rs. 10. 

The time duration for an Encumbrance Certificate

The process of obtaining an EC with the help of the Kaveri Portal has become very easy and accessible to the general public. A digital copy of the EC can be provided by government officials within 2-3 working days. At maximum, the time taken for an EC is 10-15 working days. 

How to Track the Status of an Encumbrance Certificate?

After the submission of the application for EC, the applicant is required to check the status of their EC application. For this, the applicant is required to follow the aforementioned steps:

• Visiting the Kaveri Portal: The first step in tracking the EC is to visit the Kaveri Portal. 

• Login to the Portal: The applicant is required to log in to the Kaveri Portal with their credentials 

• Selecting Services: The next step in this process is to select the type of services, i.e., Online EC Service, from the list of available services. 

• Option to Download the EC: If there is an option to download the EC, the applicant can easily download the e-copy of the EC however, if this option is unavailable, then the EC has not been approved.

Process of updating the details in the Encumbrance Certificate

Mistakes can be made by humans as may be prone to mistakes. Therefore, with this view, the government has allowed to make clerical changes to the application submitted by the applicant. To rectify these kinds of errors, the applicant is required to submit a rectification deed to the sub-registrar’s office. 

How to Download an Encumbrance Certificate?

The applicant is required to follow the below-mentioned steps to get a copy of the EC. 

• Visiting the Kaveri Portal: The first step in tracking the EC is to visit the Kaveri Portal. 

• Login to the Portal: The applicant is required to log in to the Kaveri Portal with their credentials 

• Selecting Services: The next step in this process is to select the type of services, i.e., Online EC Service, from the list of available services. 

• Option to Download the EC: There will be an option to download the EC. The applicant can easily download the e-copy of the EC, which contains the sub-registrar’s e-signature.

Challenges faced while applying for an Encumbrance Certificate

The applicants face some challenges while trying to obtain an EC. However, with every problem, there comes a solution to it. The same goes for the challenges faced during the process of obtaining an EC. The problems and their solutions run as under:

• Missed Transactions: Sometimes, the EC does not contain the correct information due to missed transactions. The solution for this challenge is to keep the records updated with government officials.

• Time Taking: As everyone is not tech-friendly if the applicant is going with the offline mode, then this process is very time-consuming. However, the only solution to this is to get it filed online by taking the help of an E-Mitra Kendra. 

• Clerical Errors: At times, it can be seen that the EC contains clerical or entering data errors. The only solution to this issue is to regularly file the rectification deeds. 

Conclusion

An Encumbrance Certificate holds a very special place in property transactions. Every Buyer always desires to get the property with a good and marketable title with no encumbrances on it. This is where an Encumbrance Certificate plays an important role. It can be obtained easily and is of immense help as it draws the correct picture of the property. 

Frequently Asked Questions on Obtaining an Encumbrance Certificate Online in Karnataka

Q1. How many days will it take to get EC Online?

Ans1. It takes around 2-3 business days to get an EC Online. 

Q2. What are the fees for EC in Karnataka?

Ans2. The cost for obtaining an EC in Karnataka is Rs. 5, for search in the first year is Rs. 30, and for the subsequent years is Rs. 10. 

Q3. How many years of EC is required?

Asn3. An EC is valid for up to 30 years, covering property history and details of any encumbrances on the property. 

Q4. What is EC in Property Documents?

Ans4. An EC stands for a legal document that depicts its picture regarding the loans on the property and its legal title. 

Q5. Are Khata and EC Certificates the same?

Ans5. No, these are two separate documents. Khata Certificates are for keeping the accounts, and EC Certificates are obtained from the sub-registrar’s office.

Q6. What is the validity of an Encumbrance Certificate?

Ans6. An Encumbrance Certificate is valid for 30 years from the date of its issue. 

Q7. What are the types of Encumbrance Certificates?

Ans7. Form 16 and Form 17 are the two types of Encumbrance Certificates. 

Q8. What is Form 17 in Karnataka?

Ans8. Form 17 Encumbrance Certificate is used to file online applications for obtaining the Encumbrance Certificate.

Q9. What is the most common type of Encumbrance?

Ans9. The most common types of encumbrances are mortgages, liens, loans, charges, property tax liens, etc. 

Q10. Who issues an Encumbrance Certificate in Karnataka?

Ans10. An Encumbrance Certificate is issued from the office of the Sub-Registrar.