Certified Copy of Registered/ Lost Documents

1. What is an Encumbrance Certificate?

According to the Dictionary, Encumbrance is a person or thing that inhibits someone from moving freely or accomplishing what they wish. If you look up the synonym for encumbrance, burden, you’ll see what I mean. In the context of a property, it has a similar connotation. An encumbrance certificate is a legal document stating whether a property is free of legal or financial obligations, such as unpaid debts or mortgages. The certificate of encumbrance on property is one of the most crucial documents used to establish a property title when purchasing a home.

An Encumbrance Certificate, often known as an EC, is a vital document that verifies a property’s free title/ownership. The charges placed on the property in question are referred to as an encumbrance. It is held as a guarantee for any debt owed to it by its owner that has not been paid as of a certain date.

This certificate also would state who the real owner is and how many times the property has passed through hands since it was first created. When you obtain this paperwork, you’ll know you’re dealing with a trustworthy vendor who isn’t in any legal or financial trouble.

Encumbrance property papers would demonstrate the property’s legal and financial ties to the owner of their land documents. If the owner has taken out a debt against the property, the certificate will reflect that. If the property is involved in a legal dispute, the EC must reflect this.

He must be familiar with some of the essential documents required to finish your smooth purchasing process.

Some of the most significant real estate documents:

2. Encumbrance Certificate (EC)
3.  Occupancy Certificate (OC)
4. Completion Certificate (CC)

2. Importance of Encumbrance Certificate

For each of us, owning a home is a dream come true. However, purchasing a home in India is filled with complications. The majority of individuals do not grasp the documentation, and as a result, they wind up with a property that becomes a lifetime nightmare. The Encumbrance Certificate is one of the primary land documents that must be examined to have a clear, legal acquisition (EC). So it would be best if you never lost possession of it, or you can keep multiple xerox copies of it as a proof. 

The following elements highlight the significance of an Encumbrance Certificate:

• Because purchasing a home is such a large investment, buyers should check for any obligations that may be transferred to them along with the ownership of property.
• Obtaining a property’s “Encumbrance Certificate” assures a buyer that the property is free of any financial or non-financial responsibilities such as liens, outstanding debts, and leases.
• Buyers must receive the document because it is also provided at the time of loan on the property and the home loan application.
• Land documents are necessary to protect the legal ownership of the property or guarantee that the buyer is eligible for the financing.

In the following cases, an EC may be required:

• The documentation is provided to get the property modified/ transferred Khata Registration / Khata Transfer / Patta).
• The certificate is given to the Panchayat Officer to amend the land tax documents if the property registration documents or land tax has not been paid for more than three years.
• To withdraw Provident Fund for the purchase or construction of a home.

3. Why need Encumbrance Certificate for the particular property?

When purchasing a property in India, an Encumbrance Certificate is necessary to know previous property transactions. It also specifies that the property is free of all debts. A property buyer can use an Encumbrance Certificate to demonstrate that the property has a clear title and is free of all liabilities.

All property transactions that the Registrar has documented will be investigated, and the appropriate details will be entered into the EC. The Certificate is generally for a particular period, and only transactions from that period will be evaluated.   

4. How to Apply for Encumbrance Certificate?

To get an Encumbrance Certificate, 

• A copy of the Sale Deed must be submitted. 
• After that, send it to the jurisdictional sub-office registrars with a non-judicial stamp. The Form should also include the complete home address, precise property location, the requested term, land survey number, property description, correct dimensions and boundaries. 
• Based on the period for which the application is made, a minimum fee will be imposed. 

Obtaining an EC can take anywhere from 3 to 7 working days or longer, depending on the requested time.

Form 15 and Form 16 are the two most common types of encumbrance certificates.

1. Form 15: If the property has any encumbrances during the specified period, ‘Form 15′ is issued. It contains details such as the type of encumbrance, E.g., a gift, division, lease, the persons involved, the document’s registered number, loan and other information in a chronological order.
2. Form 16: If the property has no encumbrance throughout the specified term, the ‘Form 16′ or ‘Nil Encumbrance Certificate is given. When a Form 16 NEC is issued, it certifies that the property and land are free of any liabilities for the specified time.

Buyers should get a Possession Certificate in addition to an EC. While an Encumbrance Certificate provides all transaction facts about a property, it may not be sufficient to establish ownership.

When getting your EC, you must be cautious. Ensure the information in the Encumbrance Certificate and the schedule section of the sale deed are correct and complete. Conduct rigorous background checks on the property you desire to buy to determine if it has any encumbrances. As a buyer, place a newspaper ad indicating the desire to purchase the property and requesting that any problems be resolved in writing so that the courts would not hear any further claims.

5. How to get an Encumbrance Certificate of Property?

The certificate is available at the sub-office registrar’s, where the referenced property is registered. The following procedures must be followed to get an encumbrance certificate:

• Form 22 must be submitted to the registrar to obtain the certificate. The form is available on each state’s official document website.
• This application form shall be accompanied by stamp paper worth Rs 2.
• a certified copy of the address proof, the certificate’s purpose, and information on the property and property title.
• In addition to the application, some fees must be paid.
• An examiner will inspect all transactions against the land in a given period once the application is filed.
• Following the examination, the sub-registrar will provide an encumbrance certificate in Form No. 15 detailing all transactions within a given time frame.
• A NIL encumbrance certificate in Form no. 16 will also be issued if no transactions occur.
• Certificates are normally issued within 15 to 30 days of the application date.
• The mandatory payments for the certificate begin at Rs. 100 and increase depending on the number of years the encumbrance certificate is required for. In addition, fees differ according to state norms and regulations.
• The document is given in the local language, but an English translation can be obtained for a price.
• As proof of ownership of the property, it is recommended that both an encumbrance certificate and a possession certificate.

6. Encumbrance Certificate for Property Buying

When buying or selling a home or applying for a home loan or a loan over property, an Encumbrance Certificate is necessary to establish that the property is freed of any financial or legal problems. An encumbrance certificate, for example, would show you if the seller has pledged it to a bank.

EC for property buying particularly is crucial because, in addition to knowing about previous property transactions, most banks in India want an Encumbrance Certificate for the previous 13 years before giving a home loan.

Another thing to keep in mind is that the Encumbrance Certificate will only represent transactions and papers registered with the office. Testamentary papers, short-term lease deeds, for example, are not required by law to be registered and can be excluded from the scope of transactions documented at the sub-office registrars.

7. How to obtain an Encumbrance Certificate

Encumbrance Certificates are required for a variety of reasons. The documents required to get an Encumbrance Certificate are listed below. However, a buyer should not rely solely on the Encumbrance Certificate when purchasing a home, as not all previous property transfers are recorded in the Encumbrance Certificate.

1. Attested copy of proof of address
2. Application form
3. A photocopy of previously completed property deeds, like sale deed, release deed, gift deed, partition deed, transfer deed, etc.
4. Information on the property
5. Property title
6. Period for which the Encumbrance Certificate is required
7. It should bear the applicant’s signature, as well as the registered deed number, date, book number, volume/CD number.
8. The reason for which the EC is being used
9. In the event of an application, the attorney holder makes a copy of the Power of Attorney.
10. Aadhar card
11. Property card if available.

A considerable number of buyers rely solely on the EC for information on previous property purchases, and to see whether there’s a free title that’s not encumbered, they are unaware. The EC will only be made up of property transactions for a limited time and does not include the time before and after. It is possible that any pending dispute on the property and land will not reflect the EC.

8. Encumbrance Certificate Online

Purchasing a home is one of the most significant decisions you will ever make. Due diligence is required when purchasing a property, and you must verify various property documents. An Encumbrance Certificate is one of the most essential documents you’ll need to apply for and verify. The Government of Karnataka’s Department of Stamps and Registration has implemented online property registration, and Individuals can now reserve slots for registration in advance using the internet.

In Karnataka, applying for EC online is a reasonably simple process. In Karnataka, you can obtain an encumbrance certificate on the official website ‘Kaveri Online Services.’

The procedure for downloading Encumbrance Certificated online for properties in the state of Karnataka is outlined below.

1. Please go to the Kaveri online services portal
2. To access EC online, you must first register as a “new user.
3. In the portal’s Login area, select the ‘Register as New User’ button.

You must enter your personal information, such as your name, date of birth, PAN, phone number, address and email address, and then click the “Register” tab.

4. Post which your email address will receive an activation code

•             Please enter the code and press the ‘Activate’ button
•             You can change the password after logging in with the credentials
•             Once you’ve entered your user’s name and password into the portal
•             Under the ‘Services’ section, select ‘Online EC.’

5. You must choose an EC time frame and enter the property information from the relevant Sale Deed registration document.
6. To receive EC online, enter Property Boundary information.
7. Select the option ‘Send OTP to Access Document.’ Your registered phone number will receive a One-time password.
8. To read or download a Property Encumbrance Certificate online, you must enter your OTP.
9. Then select ‘View Document’ to view or print the necessary EC certificate.

Please keep in mind that the EC   Encumbrance Certificate that is issued is merely for informational reasons. It isn’t a certified copy that is digitally signed, and it’s free. If you’d like to get a certified copy of the Encumbrance Certificate, after entering the OTP, select the option ‘Check to apply for digitally signed EC’ and then tap on ‘View Document.’

At the bottom of the online PDF document, select the ‘Proceed’ option and pay the required fees, as there is a minimal charge for downloading the signed copy.

10. A receipt for online payments is generated. You may now select ‘Refresh Payment Status’ from the drop-down menu. Your online Encumbrance Certificate application is submitted and saved under the ‘Pending / Saved Application’ section. Your EC application will be digitally signed before being delivered to the appropriate authorities.

You will be able to monitor the progress of your EC application. Once the EC is accessible online, you can download the signed and certified copy.

9. Legal Documents for Property

We spend half of our lives trying to figure out how to save enough money to buy that one property we can call our own. Property ownership is considered the ideal form of investment and security. We have been trained to work hard, acquire a lot of money, and eventually have our property, while for others, it is a financial investment. However, there are several considerations to make before purchasing a home to avoid getting caught up in legal entanglements and losing not just your dream to own a property but also your money.

Purchasing a home can be a difficult process; you may become puzzled by the technical jargon. When we purchase a home, we usually search for amenities such as 24-hour water and electricity, hospitals, shopping malls, and parks nearby. However, that isn’t sufficient?

Verify any land documents relating to a property that you have finalised, as well as legal compliance to ensure that you are safeguarded against any future legal issues. We made things as simple as possible for you. This guide will help you avoid common real estate errors while purchasing a house. When buying a home, it’s critical to double-check that the following legal documents are in order.

1. Title Deed:

It’s one of the most important things to keep an eye on. A property’s title can be searched at a Sub-office Registrar’s. If a seller’s title isn’t faultless and free of encumbrances or flaws, they won’t be able to transfer the property to a potential buyer. If the property isn’t in the seller’s name and doesn’t have a clear title to it, they won’t sell it. The buyer has the right to receive all of the property’s title paperwork. The title document can be requested; title documents generated thirty years earlier than the title search date must be traced. There should be no ambiguity in the title as to who owns the land. While purchasing a property, you should confirm whether the seller owns the property or only has development rights.

2. Encumbrance Certificate:

When buying or selling a home or applying for a home loan or a loan over property, the document is necessary to establish that the property is freed of any financial or legal problems. An encumbrance certificates encumbrance over the property can be looked for at the Sub-office, Registrar’s much as title searches. You can learn everything there is to know about the property, including whether there is a mortgage, loan, any third-party claims, liens, and so on. For an EC, a duplicate of the sale deed must be produced. To receive an Encumbrance Certificate, fill out a form and submit it to the local Sub-Registrar office.

3. Master Plan:

Before purchasing a home, prospective buyers should carefully examine the master plan for the area in question and determine whether these claims will be realised. The master plans for the area can be obtained from your city’s local town planning department. It would help if you also double-checked the property use zone according to the master plan for the site.

4. House Plan Approval:

It’s crucial to verify if the building plan has been approved. You must also look to see if any building by-laws have been breached.

5. Agriculture to Non-Agricultural Land Conversion Certificate:

The plot that you are buying should not be categorised as agricultural land. Any land that has been categorised as agricultural land is not permitted to be used for residential purposes. To change the land use from agricultural to non-agricultural, you’ll need a conversion certificate.

6. Land Use Certificate:

Most of you are already aware that developing a residential home in a commercial zone is prohibited. It would be best if you appealed to your town’s development authorities to see whether the residential property you wish to purchase is in a residential zone.

7. No Objection Certificate:

Wherever possible, no objection certifications should be acquired.

8. Commencement Certificate:

This certificate is required before any property construction may begin.

9. Property Tax Receipts:

 If you are purchasing a resold home, you should request previous property tax receipts.

10. Sale Deed:

It is a legal document that certifies that a property is sold and the seller’s ownership has been transferred to the buyer.

11. Khata Certificate/ Extract:

It is the seller’s account for the property. This is critical not only for the transfer of a property but also for the registration of a new one.

10. How to Get Certified Copies of Encumbrance Certificate

Following the issuance of the necessary documents listed below, the certified copies of the Encumbrance Certificate can be collected from the Sub-Registrar’s office, where the property was initially registered. If you’re not sure where your property was registered, you can look it up in the sales deed.

1. Attested copy of proof of address
2. Application form
3. A photocopy of the previously completed property deed, sale deed, release deed, gift deed, partition deed, transfer deed and so on.
4. Information on the property
5. Property title
6. Period for which the Encumbrance Certificate is required
7. It should bear the applicant’s signature, as well as the registered deed number, date, book number, volume/CD number.
8. The reason for which the EC is being used
9. In the event of an application, the attorney holder makes a copy of the Power of Attorney.
10. Aadhar card.

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Frequently Asked Questions (FAQ’s)