ENCUMBRANCE CERTIFICATE (EC)

Saturday Brain Storming Thought (244) 12/10/2024

ENCUMBRANCE CERTIFICATE (EC)

An Encumbrance Certificate (EC), a crucial document, verifies free title/possession of a property

It is a legal document providing details of legal/financial vurdens of a property

Details mentioned in an Encumbrance Certificate

1) Name of property owner

2) Property related transactions and documents

3) Name of the parties, volume, book and paper numbers, and other details and dates involved in this transaction

4) Property descriptions mentioned in the Saledeed

5) Information on a mortgage

Procedure to get Encumbrance Certificate in Maharashtra

1) An individual has to visit their respective Sub Registrar office

2) Collect the application form for EC (Form 22) from the registrar office

3) Fill the form with complete details as required

4) Submit this form with a non-judicial stamp paper, the required documents and the certificate purpose

5) Pay the necessary fees as quoted at the time of submission

6) Then an individual will receive an acknowledgement receipt with an ID

7) The EC fees may vary from place to place

8) The EC issuance period ranges from 15 to 30 days from the date of individual application

9) This EC certificate is issued in the regional language, but an additional fee is required for an English-translated certificate

Documents required to apply for Encumbrance Certificate in Maharashtra

1) Applicants residence proof

2) Identity cards like Aadhar, Pan or Ration card

3) Property address and credentials

4) Sale deed copy

5) Purpose of application

6) Encumbrance Certificate requirement period

7) Copy of power of attorney if applied by a holder of the same

Eligibility Criteria to apply for Encumbrance Certificate in Maharashtra

1) Applicants should own a land

2) Someone who holds the power of attorney

Uses of Encumbrance Certificate

1) To make sure that property or land has a free title

2) Used to avail a loan with their property as collateral must furnish EC to financial institutions

3) Helps to update land or property tax records

4) It helps individuals record their property ownership or transfer of title in the revenue records of local municipal corporations through mutation

Online EC process is not available in Maharashtra

EC will reflect only those transactions and documents that have been registered with Registrar’s office

Nil Encumbrance Certificate

A nil-encumbrance certificate is issued by the sub registrar’s office for a property which has not seen any transaction in the period for which an EC has been sought by the applicant

A nil-encumbrance certificate is issued in Form 16

Types of Encumbrance Certificate and use

1) EC for flats

When you are buying a property, an EC is a must document to ensure you are dealing with the real owner, and there are no pending loans against the property

2) EC for home loans

When you are taking a home loan to buy a property, banks typically ask for EC before accepting your home loan application

3) EC for PF withdrawal

When you withdraw money from your PF, your employer would ask for the EC

4) EC for mutation

After buying a property, the seller has to apply and get the document out from the government by way of property mutation

5) EC for Flat Sale

When you are selling property, the seller has to apply and get the document from the government record to show it to the buyer

Encumbrance Certificate issuing authority

The Sub-Registrar in whose jurisdiction the property exist, issues the Encumbrance Certificate

This is an office where the property is registered at the time of purchase by the current and previous owners

Encumbrance Certificate Form 15

Form 15 will contain each piece of information pertaining to inheritance, sale, purchase, lease, mortgage, gifting, relinquishment, partition of property in question

Encumbrance Certificate Form 16

If a property has not registered any Encumbrance during the period for which applicant has sought a certificate, the Sub-Registrar office issues a nil-encumbrance certificate on Form number 16

Fees for Encumbrance Certificate in Maharashtra

In the range of Rs 200 to Rs 500

Period for Encumbrance Certificate

A EC could be taken for a period ranking between 12 and 30 years

Form 22

Form 22 is the standard proforma used to apply for Encumbrance Certificate

States issuing online Encumbrance Certificate

1) Andhra Pradesh

2) Odisha

3) Kerala

4) Puducherry

5) Tamilnadu