Only Encumbrance Certificate Guide you will ever need for property buying
A complete Guide : If you are getting into a property transaction, you might have come across the term ‘encumbrance certificate.’ But, do you know what it is? Why is it an important document? What is its format? How can one get this certificate? If not, we bring you a comprehensive guide to everything about encumbrance certificate.
What is encumbrance certificate(EC)?
It is a mandatory document used in property transactions as an evidence of free title/ownership. While buying a house, flat or plot, it is important to verify that the property does not have any monetary or legal dues. The EC ensures that there is a complete ownership of the property without any monetary or legal liability.
Why is an encumbrance certificate important?
The encumbrance certificate(EC) is important for those applying for a home loan or obtaining a loan against property or when one wants to sell or buy a property. ‘Encumbrance’ means that the liabilities created on a particular property, whereby it is held as a security for any debt of its owner, which has not been discharged as on date. An EC contains all the transactions registered relating to a particular property for a certain period (as required). These details also consists any claims or encumbrance on the property.
How to read encumbrance certificate?
Once you get the Encumbrance Certificate for the property, it is advisable to cross-check or verify some of the important details as shown in the picture. Remember that EC format can vary from state to state, but the basic details may remain the same.
A quick reading of the EC can give you information regarding:
1. Who has applied for the EC statement
2. The property details provided in the Form 22
3. The time period for which the EC has been sought
4. The complete property description
5. Transactions previously done on the said property
6. Mortgage details/ Gift settlement details
7. The name(s) of the buyer and the seller
What is Form 22 and Form 15 ?
Form 22 encumbrance certificate refers to the encumbrance certificate application form. This form is filled while requesting for an encumbrance certificate from the sub-registrar’s office. On the other hand, Form 15 of the EC contains the property details regarding sale, lease, mortgage (home loan), gift, partition, release etc that have been registered with the Registration department for any particular period for which the encumbrance certificate is sought.
Encumbrance certificate format
EC comes in two basic formats, i.e. either on Form 15 or on Form 16.
As explained previously, Encumbrance Certificate on Form 15 contains a record of sale, lease, mortgage, gift, partition, release etc for the said property. You need to get all this registered with the competent authorities and placed on record in Book I (maintained by the registering authorities) for the specific period that the certificate is being requested for.
The EC is made available on Form 16 only when there is no transaction made during the time frame for which the certificate is being sought for.
How to get encumbrance certificate?
The EC can be requested from the sub-registrar’s or the Tehsildar’s office by filling up Form 22 and affixing a Rs 2 non-judicial stamp on it. You also have to attach requisite documents like the details of ownership such as correct survey number and place where the property is situated, along with a nominal fee. Afterwards, the EC can be obtained within 15-30 working days.