Know What is Encumbrance Certificate and its Importance

The home-buying procedure asks for multiple documents and hence the home buyers are suggested to keep the papers ready for submission. One out of many legal papers is the Encumbrance Certificate. Thus, you must know the importance of EC while going forward to complete a home purchase deal. So, scroll down the page and know everything about the Encumbrance Certificate.

What is an Encumbrance Certificate?

This legal document is popularly known as EC. The definition of Encumbrance Certificate refers to any pending liability on the property. The Encumbrance Certificate is issued yearly that starts from 1^st April and ends on 31^st March. This is a registered listing of all the transactions related to property within the said timeframe. A person is required to visit the sub-registrar office to collect this certificate.

Why Encumbrance Certificate is Required?

An EC is an official document that defines if the property you wish to buy has a clear title or not. The Encumbrance Certificate with a charge or fee mentioned on it shows that the property has some existing liabilities. These liabilities can either be financial or legal. The home buyer is suggested to ask the concerned person about the fee mentioned on the Encumbrance Certificate and he/she should also emphasize to get all the dues cleared before completing the property registration process.

This legal document is also necessary to get the home loan approval. As per the guideline for sanctioning of home loan, the borrower has to submit the encumbrance certificate to the lender for availing the loan. The bank usually demands an EC between 10-15 years depending upon the age of the property.  

Documents Required to get Encumbrance Certificate

A person is required to have a set of legal papers including:

• Property details including the title deeds or property sale deed/gift deed/partition deed/release deed if any such execution has taken place in the past.
• Submit the deed number shown on the registration that has a date, book number and applicant’s signature.
• Address proof of the applicant
• Property Registration paper

Steps to Apply for Encumbrance Certificate Online

The application process to avail encumbrance certificate differs from state to state. Some states have an online platform to apply for EC while in some states you have to visit the office of sub-registrar to get the Encumbrance Certificate. Here we let you know the steps to make an online application for Encumbrance Certificate.

• Visit the official land registration website of the respective state and select the option –Apply for EC
• Fill all the mandatory fields displayed on the application for Encumbrance Certificate window and click on SAVE/UPDATE.
• Enter the tenure for which you require EC and click on the CALCULATE FEE button.
• After paying the fee you will be redirected to the acknowledgment window. Click on the VIEW ACKNOWLEDGMENT window and take the print out of the acknowledgment.
• An inspector from the land record department will inspect the property and will verify all property-related issues for the specific period.
• After the inspection, the concerned authority will release the Encumbrance Certificate for the transactions in regard to the property in the said tenure. The authority release NIL Encumbrance Certificate in case no transaction is found for the said period.

Steps to Apply for Encumbrance Certificate Offline

The application process to avail encumbrance certificate differs from state to state. In some places, the person is required to visit the office of the sub-registrar to get the Encumbrance Certificate. Here we have listed a step-wise process to apply offline for Encumbrance Certificate.

• Visit the office of Sub-Registrar and submit the duly filled FORM -22
• In the form, the applicant is required to mention the details of Buyer, Seller, Property address and more
• Deposit the Fee at the counter
• You will receive an acknowledgment receipt post the submission of the fee. This receipt is useful to track the application status.

Steps to Track Encumbrance Certificate

Once the application is made, you receive an acknowledgment receipt that can be used to track the status of the application. The application can be tracked on the same website where you have applied for EC.

• Select EC Status under the Encumbrance Certificate option listed under the Certificate menu
• Enter the TRASANCTION ID you are provided with and enter the Captcha. Click on CHECK STATUS and print the EC in case the document is prepared.

How long does it take to receive Encumbrance Certificate?

The duration varies from state to state. However, it takes merely 2-3 days to process EC against the online application. The duration for the receival of EC against the offline application for Encumbrance Certificate is between 15-30 days.

Encumbrance Certificate is an essential document to complete a property transaction. Remember, this paper is also required to resale a property so receive an EC to stay away from any property-related issue in future.