Encumbrance Certificate

• Encumbrance certificate is a vital document for buying any land or property in India as it is an evidence of ownership title. Hence transferring of property requires an EC.
•  Apart from property purchase, Encumbrance certificate must be furnished when applying for a loan against the property in any banks or financial institutions as it confirms that the property is free from any legal liabilities.
•  EC is an important document to get mutation of property (Khata Registration / Khata Transfer / Patta) done.
• This certificate must be provided to the Village / Panchayat Officer to update the land tax records if the property or land tax is not paid for more than three years.
• The encumbrance certificate is an essential document to withdraw PF for a property purchase or house construction.

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• An encumbrance certificate records the following property-related details.
•  The certificate holds the name of the property owner
•  The Certificate usually pertains to a specific period and transactions related to a property relevant to that period alone will be considered.
• Those transactions and documents that have been registered with the office alone will be reflected in the Encumbrance Certificate.

Note: Transactions recorded at the sub-registrar’s office exclude documents such as short-term lease deeds and testamentary documents as those are not necessary to be registered under the law.

•  The transactions recorded with the sub-registrar’s office records may be; sale deed, sale agreement, partition deed, release deed, gift deed, settlement deed, mortgage deed, mortgage discharge receipt, court attachment orders
• The transactions details will be listed in chronological order for the specified period.
• The certificate will highlight the date and details of the transactions, volume number, book number, document numbers, and names of the parties to the transaction.
•  This document provides complete description of the property as provided in the Sale Deeds
•   If a land is purchased on a loan then this certificate will contain details about the mortgage.

If no transactions have taken place within the specified period a Nil Encumbrance Certificate (NEC), i.e. an encumbrance certificate with no details of transaction is issued.