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An Encumbrance Certificate (EC) holds immense significance in property transactions. It acts as concrete proof of property ownership, validating both financial and legal aspects. For those seeking a home loan, buying or selling a property, or applying for a loan against one, the EC is a must-have document. It provides a comprehensive record of registered property transactions dating back up to 30 years, offering valuable insights into a property's history. In this blog, learn about the EC certificate's meaning, its importance, and why it's crucial in property purchases. Learn how to get your EC certificate online and the documents required.
What is an Encumbrance Certificate (EC)?
An Encumbrance Certificate, often referred to as an EC for property certificate, is a fundamental legal document that serves as an official confirmation of the property's free title/ownership status, indicating whether it is mortgaged or has any legal dues. This certificate is vital for property buyers as it ensures a transparent and hassle-free transaction process. You can obtain an EC Certificate online, simplifying the verification process for potential buyers and sellers.
Importance of an Encumbrance Certificate
How to Get an EC Certificate Online?
Remember, an EC is crucial for property transactions, ensuring transparency in financial and legal history.
Documents Required to Obtain an Encumbrance Certificate
The documents required for the Encumbrance Certificate are as follows:
Online Application of Encumbrance Certificate on Property
The majority of states in India allow for the application of EC through online portals. However, the methodology of application differs from one state to the other depending upon their websites and their interface. On the other hand, some states still don't have the facility to apply for an Encumbrance Certificate online, and one must follow the manual procedure.
The applicants can review if their state or the state where the property in question is listed as a portal that accepts online applications. The steps to apply for the application manually are quite similar to that of an online application. However, the only difference lies in the physical visit to the respective sub-registrar’s office. Also, the documentation is similar to the ones used in manual applications.
What does an EC for a Home Loan Include?
When acquiring a Certificate of Encumbrance on Property for a specific timeframe, it encompasses a comprehensive list of all property transactions registered during that period. An EC typically covers up to 30 years of property history, offering insights into any encumbrances, such as loans, leases, or legal obligations. It's essential to note that when you request an EC for a particular time frame, you'll receive details limited to that period. The information is sourced from the records available with the sub-register, ensuring transparency and clarity in property transactions. Obtain your EC certificate online to access this valuable data conveniently.
Tracking Encumbrance Certificates Application Status
As the sub-registrar’s office accepts and receives the application, the applicants receive an acknowledgement/reference number. The acknowledgement/reference number is provided in the case of both manual and online applications. The applicants can use this number to track the status of their applications. The processing of EC usually takes about 15-20 days and can also vary from state to state.
Benefits of EC
Here are the benefits of EC for buyers, sellers and current owners.
Read Also: What is nach Full Form
Frequently Asked Questions (FAQs)
1.) Is there any particular timeline to get the Encumbrance Certificate?
The timeline for obtaining an Encumbrance Certificate typically depends on the processing speed of the sub-registrar's office. Usually, the time period varies between 15-20 days.
2.) Why is it important to have an Encumbrance Certificate?
An EC is imperative to ensure a property is free from any obligations, dues, taxes, or other charges. It provides clarity and transparency in property transactions, assuring both buyers and lenders of the property's financial and legal status.
3.) How to download an Encumbrance Statement for your property?
To obtain an Encumbrance Statement, you can often use online portals provided by the state government. This allows you to access a soft copy of the certificate, which can be easily downloaded and printed for your records.
Conclusion
An Encumbrance Certificate (EC), also known as a Statement of Encumbrance on Property, plays an indispensable role in confirming property liabilities. It's a paramount solution for potential buyers, ensuring a property is free of obligations, and current owners. In loans against property applications, providing an EC is mandatory, expediting the process. One can obtain an EC through the sub-registrar's office or online through state web portals.
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