An encumbrance certificate is a legal document issued by the registration and stamp department. It certified that a property is free from any monetary or legal liabilities, such as loans, mortgages, or disputes. This certificate is crucial during the sale or purchase of property, ensuring that the title is clear and free from any encumbrances. The encumbrance certificate provides a detailed history of all transactions related to the property, including sales, leases, and mortgages.

Benefits:

While purchasing a property, buyers face the risk of inheriting liabilities linked to the property. The encumbrance certificate and important document confirmed that the property does not have any outstanding liabilities. Through this certificate a person assured about that the previous owner does not take any loan on the property.

If anyone seeking loan against the property or make application for the home loan, can show this certificate that the person is the owner of the property.

Encumbrance certificate is also needed for the mutation.

Encumbrance certificate is furnished to the village/panchayat for the update of records if the tax is not paid for more than three years.

An encumbrance certificate is required for the withdrawal of money from a PF account.

Documents Required:

Documents of property registration, property and its possession deed details, title deed, gift deed or sale deed or partition deed if the deed has been completed previously, a copy of the reference letter of the authority, address proof and a duly filled form.

Conclusion:

In conclusion, an encumbrance certificate is an essential document for property transactions. It ensures that the property is free from any legal or financial liabilities. By obtaining this certificate, a person safeguard himself from potential legal issues and financial risks. Whether a person buying, selling or applying for the loan against the property, having a encumbrance certificate is crucial.

FAQs

1. Can I get an encumbrance certificate after I buy the house?

1. It is recommended to get your encumbrance certificate before purchasing a house to determine the presence of any owner(s) who may subsequently claim the legal title of the property. However, you can also apply for an EC after purchasing the house to ensure that your name has been recorded by the SRO.

2. Which information is not         included in the encumbrance certificate?

1. The encumbrance certificate will not include any documents, such as house loan information and family settlements, which are not presented to the SRO.

3. How long will it take to get an Encumbrance Certificate?

1. If you have applied for an Encumbrance Certificate offline, you will receive the certificate within 15-30 days. But if you have applied for an EC online, you will receive their certificate within 2-3 business days.

4. What is an Encumbrance Certificate?

1. An Encumbrance Certificate is a legal certificate issued by the Department of Registration and Stamping of respective states. It is issued to assure that the property is free from legal liability.

5. Why is it important to have an Encumbrance Certificate?

1. An EC is imperative to ensure a property is free from any obligations, dues, taxes, or other charges. It provides clarity and transparency in property transactions, assuring both buyers and lenders of the property’s financial and legal status.