WHAT IS MEANT BY AN ENCUMBRANCE CERTIFICATE (EC)
An Encumbrance Certificate (EC) is a critical legal document in property transactions, verifying the absence of financial or legal burdens on a property. It serves as proof of ownership and reflects any claims, liens, or mortgages associated with the property.
Details Mentioned in an Encumbrance Certificate
- Name of Property Owner: Identifies the individual or entity that owns the property.
- Property Transactions and Documents: Includes all relevant transactions concerning the property, ensuring transparency.
- Transaction Parties and Details: Names of the involved parties, along with volume, book, paper numbers, and dates related to the transactions.
- Property Description: Specific descriptions as stated in the sale deed, outlining the boundaries and specifications of the property.
- Mortgage Information: Any existing mortgages or loans on the property are detailed.
Procedure to Obtain an Encumbrance Certificate in Maharashtra
- Visit the Sub-Registrar Office: Individuals must go to their respective Sub-Registrar office.
- Collect Application Form (Form 22): Obtain the EC application form from the office.
- Fill the Form: Complete the form with all required details.
- Submit the Form: Provide the form along with a non-judicial stamp paper, necessary documents, and state the purpose of the certificate.
- Pay the Fees: Submit the required fees as per the quoted amount during application submission.
- Receive Acknowledgement: An acknowledgment receipt with a unique ID will be issued.
- Fee Variations: Note that EC fees may differ based on the location.
- Issuance Period: The issuance of the EC typically takes 15 to 30 days from the application date.
- Language of the Certificate: The EC is usually issued in the regional language, with an additional fee required for an English translation.
Documents Required to Apply for an Encumbrance Certificate
- Residence Proof: Document proving the applicant’s residency.
- Identity Proof: Such as Aadhar card, PAN card, or ration card.
- Property Address: Complete details of the property in question.
- Sale Deed Copy: A copy of the sale deed related to the property.
- Purpose of Application: Specify why the EC is required.
- Requirement Period: Indicate the time frame for which the EC is needed.
- Power of Attorney: If applicable, include a copy of the power of attorney.
Eligibility Criteria to Apply for an Encumbrance Certificate
- Property Ownership: The applicant must be the owner of the land.
- Power of Attorney Holders: Individuals holding power of attorney can also apply on behalf of the owner.
Uses of Encumbrance Certificate
- Title Verification: Ensures the property has a clear title free from encumbrances.
- Loan Processing: Required by banks when using property as collateral for loans.
- Tax Records Update: Helps in updating land or property tax records.
- Property Mutation: Essential for recording ownership transfers in local revenue records.
Online EC Process
Currently, an online EC application process is not available in Maharashtra. The certificate reflects only transactions registered with the Registrar’s office.
Nil Encumbrance Certificate
A Nil Encumbrance Certificate is issued when no transactions have occurred on a property during the requested period. This certificate is issued in Form 16.
Types of Encumbrance Certificate and Their Uses
- EC for Flats: Essential for verifying ownership and outstanding loans before purchasing.
- EC for Home Loans: Required by banks to process home loan applications.
- EC for PF Withdrawal: Necessary documentation when withdrawing from the provident fund.
- EC for Mutation: Required to formalize ownership changes after property purchase.
- EC for Flat Sale: Needed by sellers to demonstrate clear title to buyers.
Issuing Authority for Encumbrance Certificate
The Sub-Registrar in the jurisdiction where the property is located issues the Encumbrance Certificate. This office manages property registration for current and previous owners.
Encumbrance Certificate Forms
- Form 15: Contains detailed information about the property’s legal history, including inheritance, sale, purchase, lease, mortgage, gifting, and partition details.
- Form 16: Issued for properties with no recorded encumbrances during the specified period.
Fees for Encumbrance Certificate in Maharashtra
Fees typically range from ₹200 to ₹500, depending on various factors.
Period for Encumbrance Certificate
The EC can be requested for periods ranging from 12 to 30 years, depending on the applicant’s needs.
States Offering Online Encumbrance Certificate
States such as Andhra Pradesh, Odisha, Kerala, Puducherry, Tamil Nadu, Telangana, and Uttar Pradesh provide online services for EC application.
Key Information Denoted by Encumbrance Certificate
- Property Description: Detailed physical and legal description of the property.
- Registration Date: Date on which the property was registered.
- Nature of Deed: Indicates types of deeds like sale deed, mortgage deed, etc.
- Guideline Value: The government’s assessed value of the property.
- Consideration Value: The actual sale value of the property.
- Parties Involved: Names of all parties to the transaction.
- Document Number and Year: Unique identifiers for the registered documents.
- Sub-Registrar Office Information: Name and code of the office where the property deed was registered.
An Encumbrance Certificate plays a vital role in ensuring smooth property transactions, safeguarding the interests of buyers and lenders alike.
