{"id":42194,"date":"2019-04-21T18:27:47","date_gmt":"2019-04-21T18:27:47","guid":{"rendered":"https:\/\/www.casagrand.co.in\/?p=42194"},"modified":"2019-04-21T18:27:49","modified_gmt":"2019-04-21T18:27:49","slug":"encumbrance-certificate-in-property-buying","status":"publish","type":"post","link":"https:\/\/www.casagrand.co.in\/blog\/encumbrance-certificate-in-property-buying\/","title":{"rendered":"All you need to know about Encumbrance Certificate in property buying"},"content":{"rendered":"\n

When buying property, there are a number of things you need to keep in mind before making the final decision. Among these are a set of essential documents to check if the house you are about to buy is legally clear<\/a>, the level of construction completed, change of ownership and so on. In addition to these documents, seasoned and first time home buyers<\/a> will also need an Encumbrance Certificate or risk facing legal action in the future. Here\u2019s everything you need to know about the Encumbrance Certificate in property buying.<\/p>\n\n\n\n

What is an Encumbrance\nCertificate?<\/strong><\/h2>\n\n\n\n

An \u201cencumbrance\u201d refers to a liability created on a property. A property\nEncumbrance Certificate, therefore, is proof that the property in question does\nnot have any financial or legal liabilities. The certificate contains details\nof every transaction on the property and can immediately point out any\nliabilities in the form of mortgage or loan against the property that is yet to\nbe cleared. <\/p>\n\n\n\n

Why do homebuyers need an\nEncumbrance Certificate?<\/strong><\/h2>\n\n\n\n

The property Encumbrance Certificate is essential not just while buying property, but is also vital for those looking to apply for a home loan<\/a> or go in for a home loan against the property. Banks will usually ask for your property Encumbrance Certificate on the property for the last 10 to 15 years. If you are planning on purchasing a property, remember to get the property EC beforehand, so you can secure your legal title on it and ensure that you are eligible for a home loan<\/a>. You will also need your property EC ready if you plan to sell your property.<\/p>\n\n\n\n

What is not included in the\nEncumbrance Certificate?<\/strong><\/h2>\n\n\n\n

While you can expect your property Encumbrance Certificate to include\nthe complete transactional history of your property, there is still the chance\nthat not every detail will be listed. Your Encumbrance Certificate marks the difference\nbetween formally registered transactions and those that aren\u2019t. Take for\nexample if the property in question had passed from one owner to another. If\nthis transfer were registered, the EC for this property would reflect the same.\nHowever, testamentary documents like wills or short-term leases won\u2019t be\nregistered and as a result, will not be documented in the Encumbrance\nCertificate.<\/p>\n\n\n\n

How to obtain a property\nEncumbrance Certificate?<\/strong><\/h2>\n\n\n\n

You can apply for a property Encumbrance Certificate after registering your property<\/a>. The office of the sub-registrar where the property you are planning on buying or investing in is registered issues the Encumbrance Certificate. While you can approach the sub registrar\u2019s office to obtain a property Encumbrance Certificate, there are a few states where you can obtain a computerised EC extract. Tamil Nadu and Pondicherry, Andhra Pradesh and Telangana, Kerala, Gujarat, Karnataka and Odisha are the states offering these computerised extracts. <\/p>\n\n\n\n

For other states not mentioned, you will have to obtain a handwritten\nEncumbrance Certificate through the following steps: <\/p>\n\n\n\n