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 invol