How to obtain an Encumbrance Certificate in Uttar Pradesh

Index

What is an Encumbrance Certificate?

Who is Eligible for an Encumbrance Certificate?

Documents Required  for Obtaining Encumbrance Certificate

Details found in an Encumbrance Certificate

Types of Encumbrance Certificates

How to Apply for an Encumbrance Certificate Offline?

How to apply for an Encumbrance Certificate Online?

How to download the Encumbrance Certificate?

How to Track the Status of the Encumbrance Certificate?

Fees Required for the Application

FAQs on Encumbrance Certificate in Uttar Pradesh

What is an Encumbrance Certificate? 

An encumbrance certificate is a legal document that confirms a property’s free title and ownership status. This certificate is an indication of the status of legal dues and mortgages on the property in question. It remains an essential certificate to property buyers as it ensures a transparent transaction of property by stating the exact liabilities the property faces. 

Importance of an Encumbrance Certificate 

Obtaining an encumbrance certificate is a mandatory obligation between the relevant parties when indulging in a property transaction, as it provides certain importance to the parties involved.

For Property Buyers:

• Legal Due Diligence

Verifies the seller’s legal right to the property, ensuring it’s free from ownership disputes or claims.

• Fraud Prevention

Detects any fraudulent transactions, such as forged documents or undisclosed mortgages, safeguarding the buyer’s investment.

• Financial Safety

Reveals existing loans, mortgages, or other financial liabilities attached to the property, preventing unexpected financial burdens.

• Clear Title Verification

Confirms that the property is free from legal encumbrances, ensuring a clear title upon purchase.

• Risk Mitigation

Reduces the risk of future legal issues arising from undisclosed property claims or disputes.

For Property Sellers:

• Marketability Enhancement

A clean EC improves property marketability and attracts potential buyers by demonstrating clear ownership.

• Facilitates Quick Sale

Speeds up the property sale process by assuring buyers of a clear title.

• Price Negotiation

A clean EC can strengthen the seller’s negotiating position and potentially command a higher selling price.

For Financial Institutions:

• Credit Assessment: 

Helps assess the property’s value as collateral for loans, ensuring minimal risk.

• Fraud Prevention: 

Protects against fraudulent loan applications based on properties with undisclosed liabilities.

• Legal Compliance

Adherence to regulatory requirements for loan disbursement and security.

General Importance:

• Transparency in Property Transactions

Promotes transparency and trust between buyers, sellers, and financial institutions.

• Legal Record 

Serves as a historical record of property transactions, aiding in dispute resolution if needed.

• Government Revenue

Contributes to government revenue through stamp duty and registration fees.

Who is Eligible for an Encumbrance Certificate?

An encumbrance certificate is not obtainable by everyone; only a few are authorised to apply for one:

• Owners and heirs  

The owners of the property and their legal heirs/successors are eligible to apply for an EC for the said property. 

• Prospective buyers 

Individuals who are interested in the purchase of the property are authorised to obtain an EC in order to shield themselves from any legal disputes or debts on the property that may blindside them. 

• Power of attorney  

An individual who has gained power of attorney from either the buyer or the owner is eligible to obtain the EC for the said property. 

Documents Required  for Obtaining Encumbrance Certificate

To apply for an Encumbrance Certificate (EC), an applicant must submit the following documents:

1. Proof of Address: 

This can include documents like an Aadhaar card, Voter ID, driving licence, or ration card.

2. Identity Proof: 

Acceptable forms of identification include an Aadhaar card, PAN card, ration card, Voter ID, or driving licence.

3. Property Information: 

Specific details about the property for which the EC is being requested.

4. Copy of Sale Deed: 

A copy of the sale deed related to the property in question.

5. Purpose of Application: 

A statement outlining the reason for requesting the EC.

6. Required Period for EC: 

The time frame for which the Encumbrance Certificate is needed.

7. Power of Attorney Document: 

If applicable, a copy of the power of attorney must be provided.

Details found in an Encumbrance Certificate

An encumbrance certificate issued by the sub-registrar’s office contains comprehensive details about the property, including information on its owner, ownership transfers, mortgages, and more. The certificate is generated for a specific period and outlines all registered transactions related to the property within that time frame. These transactions may include the following information:

1. Property Owner’s Name and Details: 

Information about the property owner, including their relevant details.

2. Property Description: 

A description of the property as it appears in the sale deed.

3. Registered Documents and Transactions: 

Records of all documents and transactions that have been officially registered with government authorities.

4. Loan Information: 

Details of any loans associated with the property.

5. Transaction History for a Specific Period: 

A record of transactions related to the property within a specified time frame.

6. Transaction Details: 

Information about each transaction, including the date, document number, book number, and the names of the parties involved.

Types of Encumbrance Certificates

A buyer can obtain one of two types of encumbrance certificates, categorised based on the property’s encumbrance status:

1. Form 15 (Encumbrance Certificate): 

This certificate is issued if the property’s sale, mortgage, or other deeds are registered with the local sub-registrar. It provides comprehensive details of all transactions involving the property under the owner’s name for a specific period. Form 15 also includes information about the types of encumbrances, such as gifts, leases, and partitions, as well as the involved parties and the registration number of the documents.

2. Form 16 (Non-Encumbrance Certificate): 

Issued by the government, this certificate confirms that the property is free from any encumbrances for the specified period because no transactions have occurred. However, Form 16 does not cover any unregistered transactions related to the property.

How to Apply for an Encumbrance Certificate Offline?

To apply for an Encumbrance Certificate offline in states where online applications are not available, follow these steps:

1. Visit the Sub-Registrar Office: 

Go to the office of the Sub-Registrar in the area where the property is located.

2. Complete Form 22: 

Fill out Form 22 with the required details, including property information, the names of the buyer and seller, and the type of document you need (e.g., EC, CC).

3. Submit Form 22: 

Submit the completed Form 22 along with your application, including all the requested information.

4. Pay the Fee: 

Pay the necessary fee at the fee counter. The cost of the Encumbrance Certificate varies depending on the time period requested.

5. Processing and Receipt: 

Once your application is submitted, the officer will review the indexes for the specified period. You will receive the Encumbrance Certificate within 15 to 30 days after submission. 

How to apply for an Encumbrance Certificate Online?

To apply for an Encumbrance Certificate online, follow these steps:

1. Visit the e-District Portal and click on “Citizen login (e-Sathi).”
2. Register on the portal by providing personal and contact details.
3. A password will be generated and sent via SMS/Email.
4. Log in to the portal using the provided User ID and Password.
5. On the portal, select the “E-SATHI INTEGRATED SERVICES” option.
6. Choose “Encumbrance Certificate” under the Stamp & Registration Department.
7. Create your profile by selecting the district, entering your Date of Birth, and providing your mobile number.
8. Pay the user charges through the online payment gateway.
9. Complete the application form by filling in the details and attaching the necessary documents for the Encumbrance Certificate.
10. Preview your application, pay the fee, and submit it through the online portal.

How to download the Encumbrance Certificate?

• The Sub Registrar’s office will review the application. 
• The Encumbrance Certificate will be uploaded to the online portal by the Registrar officer. 
• The applicant can then download the final certificate from the online portal or Digi-Locker.

How to Track the Status of the Encumbrance Certificate? 

To track the EC application, follow these steps:

1. Go to the e-District portal.
2. Click on “Application status.”
3. Enter your registration number to check the status of your Encumbrance Certificate application.

Fees required for the application

• User charges – 

Rs 15/- (Fixed)

• Service Fee – 

Rs 100/- (Fixed)

Conclusion

Navigating property transactions requires a thorough understanding of various legal documents, and the Encumbrance Certificate (EC) is a crucial one. It ensures transparency by confirming a property’s ownership status and revealing any financial or legal encumbrances. Whether you’re buying or selling property, obtaining an EC is essential for verifying clear title, preventing fraud, and safeguarding against unforeseen liabilities.

For buyers, it provides legal due diligence, fraud prevention, and financial safety, while for sellers, it enhances marketability and facilitates a smoother sale process. Financial institutions also rely on ECs for accurate credit assessments and regulatory compliance.

With the option to apply both online and offline, accessing an Encumbrance Certificate has become more convenient. By following the outlined steps for application, download, and status tracking, you can ensure a seamless and transparent property transaction process.

Understanding and obtaining the Encumbrance Certificate not only helps in securing your investment but also fosters trust and clarity in property dealings, contributing to a more robust real estate market.

Frequently asked questions on How to obtain an Encumbrance Certificate in Uttar Pradesh

Q1. How long does it take to get an Encumbrance certificate?

Ans1. The time required to receive an Encumbrance Certificate varies depending on the application method. For applications made at the registered office, it typically takes 15 to 30 days. Conversely, if you apply online, you can usually obtain the certificate within 2 to 3 days.

Q2. What do I do if I do not have a valid Aadhaar Number? 

Ans2. Aadhaar Number is not mandatory for registration or applying any eDistrict’s services, you may use copy of ration Card, copy of Election ID Card etc. as proof of ID.

Q3.Can I edit/delete/update the uploaded documents? 

Ans3.No, once the document is uploaded it cannot be edited/deleted/updated. 

Q4.What should I do if my application has been rejected? 

Ans4.You will have to apply again after completing the documents/procedure because once the application is rejected by the concerned authority; no further action can be taken on it. For further information on reason of rejection you may contact to the respective approval authority of the district.

Q5.Are EC and patta the same?

Ans5.While the Encumbrance Certificate (EC) is an essential document, it is primarily useful for non-agricultural properties. 

Q6. How much does it cost to get an EC?

Ans6. User charges – Rs 15/- (Fixed) and Service Fee – Rs 100/- (Fixed)

Q7. What is the validity period of encumbrance certificate?

Ans7. An encumbrance certificate contains information on all registered transactions carried out on the property for a specified period of time, usually up to 30 years.

Q8. Who issues an Encumbrance Certificate in UP?

Ans8.The encumbrance certificate will be issued by the sub-registrar office (SRO) as Form 15 or Form 16.

Q9. What are the types of Encumbrance Certificates?

Ans9.Form 15 and 16 are the two types of Encumbrance Certificates. 

Q10. Is EC proof of ownership?

Ans10. The EC serves as a document that verifies the ownership of a property.