Saying it simply, Encumbrance Certificate (EC) means that the property is free from any legal obligation Encumbrance certificate is a pivotal document in buying the property. EC gives list of all the past transactions related to a property.
Worthiness of EC
This document gives an assurance to the buyer of free title and clear ownership. Also, most of the banks demand EC before granting home loan against the property. So, an encumbrance certificate is important while buying property, applying for a home loan or going in for a loan against the property
Procedure to obtain EC
1)An EC can be acquired from the sub registrar’s office where the particular property deed has been registered.
2)Obtain Form no 22 along with Rs 2 non judicial stamp affixed.
3)Attested address proof should be attached
4)Mention all the details related to property. It is very important that the period , full description of the property, its measurements and boundaries are clearly mentioned in the application.
5)The application should be submitted to the jurisdictional sub-registrar's office under which the property falls
6)Pay the required fees. The fees is charged depending on no. of years for which the EC is issued.
7)Total time taken can be in between 15-30 days.
FORM 15 & 16
EC is issued in two forms-
FORM 15 : In case property has any kind of charges or liability form 15 is issued. Form 15 discloses nature of charges created, documents registered in respect of the property, amounts secured, registration details and reference.
FORM16 : In case the property does not have any encumbrances during the period, Form 16 is issue.