Encumbrance Certificate gives assurability that the property is free from any legal and monetary liabilities. When you are going to invest in a property, It is important to ensure that the property you are buying does not have any pending monetary dues. To ensure this you must have an Encumbrance certificate, from the office of the Sub-Registrar of your city. It is one of the most important document required during property transaction and works as proof of free/ownership.

Importance of Encumbrance Certificate:

If you applying for a home loan or a loan against property then, your bank will ask for an encumbrance certificate.

EC acts as an assurance that the property you are investing in is free from legal and monetary liabilities.

An encumbrance certificate contains all the transactions registered relating to a particular property for a certain period. Banks and government authorities generally ask for 10-15 years of encumbrance.

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What is Form No. 15 & 16?

The EC is issued in Form No 15, and If the property does not have any encumbrance during the said period then Form No.16 will be issued i.e., Certificate of Nil Encumbrance. If the property has any encumbrance registered during said period, then Form No. 15 will be issued with documents registered with respect to that property, type of encumbrance such as gift, partition, mortgage and lease. The entries will be given as per the data available in the sub-registrar office.

How to obtain EC?

EC is issued by a Sub-Registrar’s office where the property has been registered. Many states such as Telangana, Andhra Pradesh, Kerala, Tamil Nadu, Odisha, Puducherry and Gujrat provide online EC, where in other states you need to fill out and submit the form. In the form you have to mention:

The period for which you require EC.

-Property related details like area, survey no. and address.

-The purpose for which EC required.

-Ownership details.

you will receive the EC within 1 to 3 weeks time.