Encumbrance certification (EC) is the information about a piece or plot of land, which you must know as a buyer of land in order to make an informed purchase. The certification tells you about the loans, charges and other obligations related to a piece of land. This is crucial information that you would want to know if you are buying a plot of land. The certificate will tell you whether the land has been pledged for a loan or whether it's a part of a legal dispute.
What is an encumbrance certificate?
The meaning of an encumbrance certificate is pretty straightforward. An encumbrance is a legal claim on a property that limits the owner's capacity to transfer ownership of the property. An encumbrance certificate is a legal document about the encumbrance of land. It provides details about the ownership, legal liabilities, financial liabilities and pending dues related to the land. You can apply for this certificate at the sub-registrar office.
Why is an encumbrance certificate required?
The purpose of encumbrance certification is to reveal important details about the land to the buyer. Before you buy land, you want to make sure that it has a clear title. A certificate of encumbrance on the property can reveal ownership disputes, charges, and whether anyone can legally claim the property. While applying for a loan to purchase land, your lender may ask for an EC.
Types of encumbrance certificates
1. Form 15: If the concerned land has any encumbrances, this type of certificate will be issued.
2. Form 16: A certificate in Form 16 is issued when the land is free from encumbrances. This type of certificate is called a 'nil-encumbrance certificate'.
What is a nil-encumbrance certificate?
When land is free from any legal disputes, liabilities, charges, leases and partitions, a nil-encumbrance certificate is issued by the sub-registrar office.
What is the application fee to get an encumbrance certificate?
You will need to pay a small application fee to get the statement of encumbrance on the property. But the amount will change from state to state.
How to apply for an encumbrance certificate online?
The process of applying for an EC is different for every state. Usually, you have to visit the sub-registrar office physically to submit your application and collect the certificate. However, some states have started to allow online applications. Although the specific steps will differ for every state, here are some general steps you can follow to apply for an EC in property -
Step 1: Visit the official website of the state government and look for the option to apply for an EC.
Step 2: Enter the details required for the EC in the respective fields.
Step 3: Select the period for which you need the certification.
Step 4: Pay the application fee via online mode and apply.
Once you apply, you will receive the EC after an inspection of the land records.
Which states issue online encumbrance certificates?
Here are some of the states that accept online applications for encumbrance certificates.
- Odisha
- Tamil Nadu
- Andhra Pradesh
- Kerala
- Telangana
If you need a certificate from another state, you can check their official website to see whether they allow online applications. If they do not, you have to apply offline.
How do I apply for an encumbrance certificate offline?
You can apply for an encumbrance certificate by visiting the relevant sub-registrar office and following some simple steps -
Step 1: Locate the sub-registrar office of the jurisdiction of the land in question.
Step 2: Visit the sub-registrar office and fill out an application form for an EC.
Step 3: Pay the application fee at the office counter.
Step 4: The office will accept the application and provide you with an acknowledgement for it. Use the reference number in this document to track your application.
How to track the encumbrance certificate status?
The official websites of the EC-issuing states often have the feature of tracking your application online. You have to enter the reference number mentioned on your acknowledgement to track the application. Some states will also allow you to download the certificate directly from their websites.
Documents required to get an encumbrance certificate
Here is a list of documents that you may need to submit to get an EC. However, the specific requirements can be different for every sub-registrar office.
- Application form filled out with the necessary details
- Your address proof
- Registration document for the land
- A copy of the sale deed, gift deed, release deed or any other relevant document
- Your Aadhaar card
- Property address proof mentioning the survey number
The process of applying for an EC is quite simple. Before you decide to purchase land, make sure that it has a free title using the information on the encumbrance certificate.
Also Read What is OC (Occupancy Certificate)?
FAQs
Which information is not included in the encumbrance certificate?
An encumbrance certificate does not include information that is not presented to the sub-registrar office. This includes family settlements and housing loans.
What is the waiting period to get an encumbrance certificate?
The waiting period for getting your EC will differ from state to state. However, if you have made an offline application, you can expect to get it within 15-30 days. In the case of online applications, the waiting period can be as short as 2-3 business days. Please check with the issuing authority in your respective state.
What are the different types of encumbrance certificates?
There are two types of encumbrance certificates: Form 15 and Form 16. Form 15 is issued for land that has any encumbrances. If the land does not have any registered encumbrances during the selected period, Form 16 is issued.
How is an EC different from a property tax receipt?
A property tax receipt indicates that the owner has paid property taxes to the government. An EC signifies whether a plot of land has any encumbrances attached to it.
Can I get an encumbrance certificate after I buy the house?
Yes, you can get an EC after buying a house. However, consider getting it before you purchase to ensure that the land is free of encumbrances.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
