What is the certificate of encumbrance and its use?
An encumbrance certificate is a certificate issued by the sub-register office of revenue department. An encumbrance certificate popularly knows as EC.
The encumbrance certificate is one of the vital document to verify before we buy the property. An EC helps to verify,
- Mortgage liability
- Court attachment
- Ownership
- Property schedule
- Registration date and allotment number
- Market price and consideration price
- Deed type (Acquired through sale deed, gift deed or inherited)
- History of registered transactions & change of ownerships
If the property has been encumbered with mortgage and court attachment, property has no marketing title and cannot entitle to sell.
If the property has not encumbered, it has a clear marketing title to sell & buy.
The encumbrance certificate is usually issued in 2 forms: Form 15 or Form 16
Form 15: is issued when the property has any encumbrance during the said period, Nature of encumbrance could be gift, partition, loan, lease, legality, and parties involved in dispute.
Form 16: is issued when the property doesn’t have any encumbrance during the said period. Also, know as NIL ENCUMBRANCE CERTIFICATE (NEC). Having a clear marketing title to sell.
An EC is not only helpful to verify the property while buying. It is also an important document for several other purposes. Listed below for your consideration.
- Loan application
- Extract the information to draft sale agreement & sale deed
- Property tax application
- Khata transfer application
Therefore, an EC is mandatory at every part of property dealing that could be verification, loan, drafting the deal, obtaining property tax, khata, and submitting ownership proof to tenant at the time of renting or leasing the property, etc..
One can obtain an EC for up to last 30 years,
For property verification, It's always safe to obtain the EC till current date. Only current dated EC provides up to date transactions, avoid old dated EC.
An EC looks like below image,
An EC consist of 9 columns. here is the description of each column of an EC.
In Karnataka (including Bangalore), a property registered after 2004, can obtain EC online. Here is the step by step procedure to obtain your EC online.
Step 1: Open the website Kaveri Online Services
Step 2: New users should register. Click “Register as new user”. Below image with circle for your reference.
Step 3: Fill the registration form. Filling the registration form is very easy. It just needs your name, gender, county, permanent address, mobile number, email id, and anyone ID proof number that could be PAN, driving license, or aadhaar number. Below registration form image for your reference.
Password recovery question.
User name, password, and activation code sent to your mobile number through SMS.
Meanwhile, the web page will automatically direct to activation page as below.
Enter the activation code received through SMS or email,
This completes the registration process.
You will be auto directed to home page, to enter user name and password.
Step 4: Login and Click online EC (Black circled in below image)
Step 5: An EC application form can be filled either by property number or party name (Buyer or seller). Both the options have been circled in below image.
To fill the application form, you should have your sale deed handy. Details require like
- Registration date: is located at 1st page of sale deed.
- Party name: Buyer or seller name, locate the party name at 1st page of Sale deed.
- Property details (address): Refer to the schedule section of sale deed.
- Property number: Survey number, Katha number, Site number. corporation number etc…So on, you can search the EC by using multiple numbers alloted for independent buildings, apartments, and land.
Step 6: Let me explain in detail about filling the application form by using the option “search by party name” because this option of application form has less to fill and better accuracy. Below is the step by step procedure.
Click on “search by party name” Below image with circle for your reference.
- Property registration duration (Registration date): Select from date and to date. To locate the registration date, refer to the 1st page of sale deed. Below image with circle for your reference.
- When you select the registration date, select one day before and one day after the registration date. For example, if property registered on 6th June. Select the date as 5th June and to date as 7th June.
- Property details: You have to type the district name. Next select village name from the drop-down list.
- District name and village name are found at schedule section of sale deed. Below image of schedule section of sale deed for your reference.
- Party Name: Type buyer or seller name.
- Click at “Check to apply for digitally signed EC” and click the button “search”. Refer the below image with circle
- At next page, an application number will be allotted. Click “Proceed” button to move ahead. Below image for your reference.
Step 7: At next page, Application form and watermarked EC will appear. Below image for your reference.
If the details in watermarked EC is correct, proceed with payment.
Step 8: Make the payment. Rs. 40/-. as below image
Step 9:Transaction receipt
Step 10: Submit the application. Refer the below.
Step 11: You will receive an SMS in same day that your application has been accepted. Below image for your reference.
Step 12: Within 2 days, you will receive another SMS that your EC has been signed and uploaded. Below image for your reference.
Step 13: Go to home page of kaveri onlile services and click the icon “pending and saved application” (Below circled image for your reference).
Step 14: In-service type, select “online EC application”. Below image for your reference. Here you can check the status of an application and download EC.
This completes the online procedure of applying for EC.
When you verify the property. there are few other insights that don’t cover under EC. Some of the insights for your consideration.
- Unsecured loan
- Encroachment
- Many aspects of litigation.
- Family tree and their rights
- Land conversion status
- Most people have the misconception that current owner’s details will be mentioned in EC but please be noted, EC will show only registered owner and registered transaction. You will have no idea if the property has been bought or sold without registration or under agreement with someone without registration.
- Current owner’s details may not reflect if it is inherited property
- Current owner’s details may not reflect if it assigned through court order.
- If you are purchasing the property, Better extract the EC on your own. Never be depend on seller or builder to issue EC, because EC can be tampered or create fake document.
- and many more hidden issues
Hence verifying EC alone is not clear enough to take your buying decision. Check all the possible documents pertaining to property. Inspect the property at multiple days at multiple time frames. Talk to neighbors, family members, and have a lawyer beside you for critical deals.
Here is the list of other possible documents to verify apart from EC.
- Mother deed
- Sale deed
- Khata transfer
- occupation certificate
- Tax paid receipt
- RTC extract
- Layout plan
- Development authority approval
- No objection certificate from bank if the property was bought on loan
- Aadhaar of seller
and many more documents depends on type of property like land, independent building, or apartment.
All the best for your purchase…
We provide document verification service for buying and selling.
We provide the service of EC extract + property tax application + Khata transfer applications. To opt for our service, please write to us pgnproperties@gmail.com or Whatsapp +91–9742479020.
Thank you for reading…
Comments
Post a Comment