Importance Of Encumbrance Certificate (EC)

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Property paperwork 2Owning a property is a dream come true for every one of us. However, buying a property involves complexities and documentation that most people do not understand and in the process, end with a property that becomes a lifelong headache. In order to have a clean, legal transaction one of the key documents that need to be checked is the Encumbrance Certificate also referred to as ‘EC’ in short.

What is an Encumbrance Certificate?

The term Encumbrance means charges/liabilities created on a property that is held as a security or collateral against a loan or mortgage as the case may be. An EC consists of all the registered transactions done on the property during the period for which the EC is sought. Simply put, it is a certificate sought for a particular period evidencing the property purchase/sale, the presence of any transaction or mortgage.

What is the significance of an Encumbrance Certificate?

An EC is needed to know the past property transactions while buying a property. It further states that the property is free from all the liabilities. Through an EC a buyer can ensure that the property has a free title and is free from all the dues. Apart from knowing the past property transactions, most banks demand an EC for the past 13 years before granting a home loan/loan against the property. An EC can be acquired from the sub registrar’s office where the particular property deed has been registered.

What are the different kinds of Encumbrance Certificates?

An EC is issued based on the time period it is sought for and if any transaction has taken place during this period. There are two types of ECs;

a) Form 15:

Form 15 is issued if the mortgage, sale or other deeds of the property are registered with the sub-registrar. The Form consists of registered property transaction details in the owner’s name for a particular period.

b) Form 16:

Form 16 is issued as a Non-Encumbrance Certificate if no transaction has taken place/no transaction is registered for the sought period. When a Non-Encumbrance Certificate is issued on Form 16, it evidences that the property is free from all the liabilities for the given period. This certificate does not include any unregistered property transactions.

How can one apply for an Encumbrance Certificate?

One should submit a copy of the Sale Deed to obtain an EC. A person applying for an EC should fill in the Form 22, affix a non-judicial stamp and submit it to the jurisdictional sub-registrar’s office. Complete residential address, property survey number, property location, the sought period, property description, its measurements and boundaries should be mentioned in the Form. A minimal fee amount will be charged on the basis of the period it is applied for. The time taken to obtain an EC will be between 3-7 working days or more depending on the sought period.

Can a buyer solely rely on an Encumbrance Certificate?

No! A buyer should avoid depending only on the EC. A large number of buyers solely rely on the EC to know about the past property transactions and to check for unencumbered free title, but little do they know that not all the past property transactions are registered in the EC. The EC will consist of property transactions only for a particular period and excludes the period before and after that. If there is any pending litigation on the property, it may not reflect on the EC.

      
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36 thoughts on “Importance Of Encumbrance Certificate (EC)

  1. Saikrishna

    I have bought a land in 2001 and came to know that it was encroached by somebody else in 2009. When I asked broker about this he said he isn’t going to give us the plot..I have registration papers but link documents are missing. But in the EC it’s showing the property is sold to only us..how come can he say that the property won’t belong to us? The EC is downloaded from the state registration and stamps website of AP

    Reply
    1. admin Post author

      Hi Saikrishna

      Please consult a legal expert with all your documents and file a legal suit against the seller (if he had sold to multiple people). You can get link documents from the Sale Deed (through Sub Registrar office & other documents, if the document number is mentioned in your Sale Deed).

      Reply
  2. mahi

    helllo
    1. a person has bought the land in 2002 of survey number 1005 -2b of 0.55 cents and sold it to us in 2004 with smae survey number of 0.50 cents and doc is stating that : selling 0.50 cents in 1005-2b in my 0.55 cents , south road , east : s no of 899 , west my remaining 5 cents .

    now we have taken ec , and cerified copies , IN EC ITS SHOWING O.50 CENTS IN 899 S NO , soutth road , nortnh remaining land of seller to us , and east sno 899 ,

    does this land belongs to us ?
    how can s no : 1005-2b will become 899 in EC

    pls clarify

    Reply
    1. admin Post author

      Hi Mahi

      I hope other property documents of the previous owner do state the survey number as 1005-2b for your property. If its the case, please check with Sub Registrar office (from where you obtained the EC) on how they git the survey no. as 899 (it may be a typo error). If its not the case, then there is a mistake in the Sale deed and the same need to be rectified through rectification deed. Please reach out to a competent lawyer with your property papers to check the issue.

      Reply
  3. Arsgad

    Sir we have purchased a land 20 years before and we did a registration on that land on my mothers name and we have all they documents belong to prperty and we are paying property since last 18 year and when we planed for construction mro come and s aying that property is under case We did get any notice for that and we appled for for ec from last 20 years ec showing my mothers name

    Reply
    1. admin Post author

      Hi Arsgad

      Please consult a competent lawyer on this and if all your papers are in place, you can file a legal case against those who encroached on your property.

      Reply
  4. Puneet

    I am planning to apply for a home loan for a identified property. I verified every docs related to property like EC, OC, previous sales agreement & sales deed ( zerox and original). Everything is fine apart from last page of sales page which is missing. Seller has the copy of last page however it’s original page is missing. We have already applied for certified copy. Can you please let me know the consequences or issues (if any). Also what do you think, Bank will issue loan for it?

    What should be the approach?

    Regards,
    Puneet

    Reply
    1. admin Post author

      Hi Puneet

      If any document is missing, owner should file an FIR and also publish in two newspapers (one national & other local) regarding the loss of the document. Based on that the certified copy can substantiate that missing page. If that is not been done, ensure that you get this atleast. Without that you may face all trouble when you try to sell this property. Bank may also in all probable situation, will not fund this if they know one page is missing from the Sale deed. Also, during registration time, registrar may not accept this as well.

      Reply
  5. dadu

    My father purchased a land in1987 but the details entered in EC is not correct.the land was purchased by some others in 2006,from the same seller without our notice,now the EC is showing their names …,how to solve this problem…?

    Reply
    1. admin Post author

      Hi

      Why was the EC not corrected if you were sold the property? And how was the property sold again if you have already bought it? It points to some fraud and you should consult a competent lawyer with all your papers to ascertain if your purchase was authentic and if the second sale conducted without your knowledge was fraud.

      Reply
  6. Raveendra

    We bought a land in 2003 and we didn’t check any of the details after that. When we verified the EC recently we got list of transcations as below.
    1. In 2001 the Plot is sold to some Person A.
    2. In 2003 the same Plot Number is sold to us but with different boundaries of the first one and some of the Survey numbers are matching with the first transaction.
    3. In 2004 the PersonA of the first transaction sold it to PersonB and the link document is referencing to 1st transaction.
    4. In 2005 the PersonB of the first transaction sold it to PersonC and the link document is referencing to 3rd transaction.

    What we observed is we have the same plot no with the other transactions but different boundaries and some of the Survey numbers are matching(It usually happens). Is there a chance that two different properties are included in one single EC. Please help me what should be my next step.

    Thanks.

    Reply
    1. admin Post author

      Hi Raveendra,
      This is a case where it could be a fraud or it could be a wrong entry in the EC that is causing the confusion. In any case, it is a serious problem and you should approach a competent lawyer with all your documents and ascertain if your title is valid and if your purchase is authentic. If it is, then you need to evaluate how to tackle the other claimant to the property through legal means.

      Reply
  7. Manjunatha

    My name is manju my sister and uncle are purchased one house in joint names at 2008.but my uncle are died before one year.but how to change my sister’s single name in EC.what documents are required.what is the procedure.plz reply me

    Reply
    1. admin Post author

      Hi Manjunatha,

      If your uncle and sister bought the property together then their legal heirs have a right over the property. So unlike a person and their spouse buying a joint property, here the legal heirs of the deceased uncle have a share in this property. So a legal heirship certificate or succession certificate is to be obtained and then you will have to settle the uncle’s heirs if you want to own the entire property. Please approach a competent lawyer for assistance.

      Reply
  8. sashi

    my name is sashi.i hav taken a flat on my daughter name.single applicant owner.But now she is married.now her marriage life is not smooth.his husband is always creating financial disputes.he thinks that all expenses my daughter should expend.she is not working now.But that fellow is working in a good company.my question is that if any property is in her name and anything happens to her or she attempts any mis happen.will that property go to him as a husband or as its not a joint name in documet sale deed will that property belong to parents.plz as a father daughter relation respect plz giv ur best answers and correct one.

    Reply
    1. admin Post author

      Yes, the husband is the first heir along with children, if any. Then comes the in-laws and then only parents assuming she is Hindu.\nPlease ensure your daughter?s safety and also consult a lawyer to protect the property, in case you have paid for it.\nYou can do a gift deed registration in your favour with her acceptance so that she is protected from being harassed for property.

      Reply
  9. Sakthivel V

    Hi,\r\nCould you pls suggest anyone. I bought a land thro EMI in the promoter and land alreday registered with my name . still 4 months EMI need to be paid . I have checked online EC last month showing that different name but original documents appearing in my name with promoter untill pay the EMI. when i asked promotor told me that we ll get Corpon copy of documents and direct EC from register office and based on that ll act accordingly . Kindly suggest exact procedure to show my name in EC documents .

    Reply
    1. admin Post author

      Hi Sakthivel\n\nThe query is not clear, please call us on 080-67684444 to share more details so that we can help you.

      Reply
  10. mansoor

    I want to purchase a flat. Our lawyer asked the seller to submit EC which he refused. He says he did not took loan etc. Later he convinced us that he will give us EC 4 days after the registration of flat – which means that I have to pay the entire amount, registration will be done without EC. Is it possible ? Can we register without EC ?\r\nOnce the registration done can he able to extract EC ? pls let us know

    Reply
    1. admin Post author

      Hi Mansoor\n\nThe EC is the first document to be checked for legal title verification. If that document itself is not being given, then I don?t see the point of buying such a property. However, anyone can apply for an EC and check. So approach a competent lawyer and get the EC as well as do a proper title verification before you proceed.\n\nFirst paying the full amount and registering the flat and then running behind the seller is a recipe for disaster. Don?t do it.

      Reply
  11. C.MURALI MOHAN

    i want to purchase a land and build a house from builder.It is a gated community.but partners are 3 members. in venchors.my coleague purchase a plot in venchor .but only one person signed in registered office .is it sufficient.And among 3 members 2persons showing RR in encumbrance certificate and one person shows RE .\r\n\r\npl give clarity to purchase a plot in venchor

    Reply
    1. admin Post author

      Hi Murali Mohan\n\nSorry, we are unable to understand your question. Please provide accurate and correct information for us to able to guide you. If you need to speak to us you can call us on 080-67684444.

      Reply
  12. Anoop

    Hi , \r\n\r\nI have a property brought from a builder and have been paying tax on it for last 3 years . Recently we took a EC from the time we bought to till date , but the EC doesnt show our name itself . It shows the name of the builder from whom we bought the land . How can we make sure the piece of land is in my name only . Pls suggest what other documents should i get . Do we need to get the mutation document to check it . Where do we apply it for ?\r\n\r\nRegards\r\nAnoop

    Reply
    1. admin Post author

      Hi Anoop\n\nThe EC should reflect your transaction if the sale deed registration was done. If the sale deed was not registered then it would not appear in the EC. But there are times when the records are not updated properly or may have been missed out. If you own the property then it is important to ensure that the EC reflects your name as the last one. You should get it checked.\n\nIt is difficult to comment on this without reviewing the documents that you have. You should consult a competent lawyer with your documents to find a solution. If you need our assistance, you can contact us at 080-67684444 or email us at services@homeshikari.com

      Reply
  13. Naveen

    Dear Sir, We are looking one vacant property in a layout, which was formed in 2000-01. Agent provided sale deed, E.C, tax paid receipsts (2004-06) and E.C from 1999 to till May 2015. Both are Form 16, one is for a period of Aug 2014 to May 2015 and another one is from 1999 to 2004, the two forms because of different sub-register offices. How to identify whether owner has sold or agreement with any other parties. What initial documents I should ask for further verification.\r\nThanking you

    Reply
    1. admin Post author

      Hi Naveen\n\nThese are the basic documents required, but based on an evaluation by a competent lawyer more documents will be sought to ascertain the transaction history, family tree, land use conversion, any approvals etc. Also the EC is mostly checked for a period of 30 years or more and 1999 to 2015 seems pretty short. If there are any prior sale agreements entered into, it will show up in the EC.\n\nPlease ask for a complete set of legal title papers including Khata and take it to good lawyer. It is impossible for a lay person to decide on whether the title is good or not, based on a finite set of papers. For ex. if a particular property had a minor interest at the time of transaction, that could raise a red flag with the lawyer and they may insist on some more documents to be produced.\n\nA plot is a life time investment and you should not proceed unless you get a clean title chit from a competent lawyer. Especially because plots run a risk of improper land use (no conversion available), betterment charges not paid, no approvals sought etc. So it is best to be cautious before proceeding.\n\nIf you need help, call us at 080-67684444 or email us at services@homeshikari.com

      Reply
      1. Naveen

        Dear Sir,\r\nThank you, Have you did any documents verification in Marathahlli location since these are revenue / no converstion sites which was formed around 15 years back and no betterment charges paid.

        Reply
        1. admin Post author

          Hi Naveen,\n\nIdeally without betterment charges/conversion document, B Khata are issued (provided no litigation issue or special notification from any other authority). We cannot comment without getting documents verified.

          Reply
        2. Ritesh

          In case details entered are wrong and doesn’t reflect in EC then what is the process of getting it corrected. Is it teditious task ? Assuming that everything is correct in sale deed.

          Reply
          1. admin Post author

            Hi Ritesh\n\nYou will have to apply with the copy of the EC that has the incorrect or previous details along with the sale deed (assuming sale deed has the correct details), then they will do the correction though it may take some time and follow up. If the sale deed itself has errors, then unless that is corrected, the EC cannot be modified to the right information.\n\nHomeShikari undertakes these kind of works and you are required to get in touch with copies of the documents for us to check. Please email us at services@homeshikari.com or call us at 080-67684444

            Reply
  14. babu

    My mother having one property.EC showing 1500 rupees debt to her sister’s childrens(500 each).(she died 45 years ago).The possession of land and tax is paying mother’s name.How can we avoid the above said 1500 rupees.Grand father passed in 1971,he wrote ossyath and registered by name of mother.

    Reply
    1. admin Post author

      Hi Babu,\n\nYou have to clear the debt by paying the money to your sister?s children and then getting them to clear the encumbrance. In the absence of this, if you want to do a sale it will be very difficult because no one will purchase a property with encumbrance. Talk to the sister?s children and try to settle it amicably.

      Reply
  15. Priya

    Could you please suggest on the case below- \r\nMy Father had created Will 20yrs ago saying that his residential house should be divided into 5parts as he has 5 kids after his death. My father was bed ridden since 2yrs, he passed away last week due to heart attack. Now, we checked EC and got know EC is on her name. What do we do next? Do we file a case against her saying without our knowledge she has done this etc ? Or apply to change EC ? Any suggestions please ? \r\nThank you

    Reply
    1. admin Post author

      Hi Priya,\n\nIt is not clear in whose name the EC is? You refers to her but there is no context to understand who that person is.\nImportant thing is to check if will was registered, if not were there other wills drafted after that because 20 years is a very long time and it could be that the father changed the will subsequently.

      Reply
  16. ganesh

    Sir I have doubt about ec actually my mother having agriculture land but now our wicked relatives want to occupy our land so they submitted ec .land is registered in the name of my mother .I already enquired that land register not change by seeing some information about ec means a clean certificate on land but land is ours now cancel to ec what step we have to take

    Reply
    1. admin Post author

      Hi Ganesh,\n\nAm not sure how the EC can reflect someone else’s name if the real owner in whose name the sale deed is there is your mother. The correction / changes in EC are done on the basis of sale transaction or any mortgages or lien created on the property. If your relatives have created a lien or mortgage on the property without your mother?s knowledge, then you should approach a lawyer to handle the situation. Normally, if there is no lien or mortgage on the property then the EC should show your mother?s name as the last registrant.

      Reply

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