Saturday Brain Storming Thought (259) 25/01/2025

ENCUMBRANCE CERTIFICATE (EC)

An Encumbrance Certificate is a legal document that certifies land details in terms of ownership, legal and monetary liabilities

It works as a record that the land is free of pending taxes, dues or any legal and financial issues

Hence, a buyer of this property can secure ownership without any legal troubles

Details mentioned in an Encumbrance Certificate

1) Name of property owner

2) Property related transactions and documents

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

4) Property descriptions mentioned in Sale deed

5) Information on a mortgage

Procedure for obtaining Encumbrance Certificate in Maharashtra

1) To apply, 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 in this form with complete details as required

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

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

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

EC fees may vary from place to place

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

8) This certificate is issued in regional language

9) Additional fee is required for an English translated certificate

Documents required to apply for EC in Maharashtra

1) Applicants residence proof

2) Identity cards like Aadhar, Pan and ration cards

3) Property address and credentials

4) Sale deed copy (Saledeed related to land, latest or old)

5) Purpose of application

6) EC requirement period

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

Eligibility Criteria to apply an EC in Maharashtra

1) Applicants should own a land

2) Someone who holds a 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

Types of Encumbrance Certificate forms

1) Encumbrance Certificate form 15

If a property has any encumbrances during the period for which the applicant has sought an EC in Maharashtra, the SRO issues an EC on Form 15

This will include information related to inheritance, sale, purchase, lease, mortgage, gifting, relinquishment, partition of the property etc

2) Encumbrance Certificate Form 16

In case no transaction has been recorded during the period for which the applicant has applied for an EC, the SRO issues a nil encumbrance certificate on Form 16

3) Form 22

Form 22 is the application form that has to be filled to apply EC in Maharashtra

Signicance of Encumbrance Certificate

1) Verifies ownership

2) Facilitates property transactions

3) Act as a legal proof

Uses of Encumbrance Certificate

1) Property transactions

2) Loan processing

3) Legal reference

Encumbrance Certificate Online procedure

1) Visit the official portal of these states

2) Locate and click on the Government Forms section

3) Locate and click on – Stamps and Registration – Application forms of EC

4) Download and fill up Form 22 with the requested information

5) Attach the documents required along with your form

6) Submit your application to the nearest Sub Registrar office and collect acknowledgement slip

7) The SRO will conduct a physical inspection of your property and check the index for any previous deeds issued during the requested period

8) Online applications are usually processed in 2-3 working days

9) You will receive the EC from SRO in 6 to 30 working days

Form 17 Encumbrance Certificate

Form 17 is an EC form used to search for properties by the name of a party

It is used for due diligence before a transaction or to search for specific transactions

Limitations of Form 17 EC

1) Form 17 EC are generally less accurate than Form 15 EC

2) Form 17 EC may not be accepted for transactions like loans or litigations

COMPILED BY:-

Er. Avinash Kulkarni
9822011051

Chartered Engineer, Govt Regd Valuer, IBBI Regd Valuer