Encumbrance Certificate (EC): Meaning, How to Apply, Download & Status Check

An Encumbrance Certificate (EC) is an essential legal document verifying that a property is free from financial or legal burdens. It safeguards the interests of the buyers. It records all registered transactions concerning the property, such as sale, mortgage, or lease. 

Understanding the EC is important to avoid hassle, whether buying, selling, or taking out a loan. Continue reading this article to gain detailed insights about getting an encumbrance certificate, downloading one, and more. 

What is an Encumbrance Certificate (EC)?

The term ‘Encumbrance’ means a legal claim made on land/property apart from the land owner. An encumbrance certificate is an important document that contains records of registered transactions about a property. This certificate confirms to the buyers if a land is free from financial or legal liability, such as loans, liens, mortgages, legal dues or legal disputes. 

An encumbrance certificate is essential when you plan to sell or purchase a property. You also need this certificate when applying for a loan against property or a home loan to validate that the property is not further associated with legal liabilities and that the owner has the right to sell it. 

Buyers can get an encumbrance certificate by visiting the sub-registrar’s office. However, some states, such as Karnataka, Kerala, UP, Tamil Nadu, Telangana, and Andhra Pradesh, provide an encumbrance certificate online. 

Purpose of Encumbrance Certificate

The purposes of issuing this certificate are the following:

• An Encumbrance Certificate (EC) serves as proof of ownership or title of the landowner.
• This certificate is required when applying for a home loan against property.
• EC helps you with the mutation of any property, including khata registration and khata transfer.
• This document secures the legal title of the property, ensuring buyers that the land is free from any encumbrances.
• If the land or property taxes have not been paid for three years or more, the panchayat or village officer must receive the encumbrance certificate to update the property’s tax records.
• An encumbrance certificate is required when a person withdraws money from a PF account to purchase a property.
• After purchasing a property or land, the new owner must transfer the ownership of the property to his/her name by registration. For this, issuing an encumbrance certificate is essential during the time of registration.

Types of Encumbrance Certificates

There are mainly two types of encumbrance certificates. Let’s explore each of them in detail below:

Form 15

Form 15 is a comprehensive EC that shows details of all transactions carried out regarding the property within the sub-registrar’s office for a set period. It indicates the presence of encumbrances, such as loans or mortgages, during the specific period. It provides the complete history of the property, including its ownership, parties involved, registration details and nature of transactions. It shows the previous encumbrances even if they have been cleared. 

Form 16

Form 16 is also known as NIL EC. It confirms that the property is free from encumbrances for the set period. This means that no registered liabilities or claims exist regarding the property. It indicates a clear title to the buyers, making it safe for purchase. 

How to Get an Encumbrance Certificate?

You can get an encumbrance certificate by visiting the sub-registrar’s office. Follow these steps to get the certificate:

Step 1: Visit the Sub-Registrar’s office where the property is registered. 

Step 2: Obtain the EC application form from the office counter.

Step 3: Fill out the application form and attach the required documents, such as ID proof, address, property registration document and non-judicial stamp paper.

Step 4: Submit the application and pay the required fees.

Step 5: You can collect the certificate from the office after the application is processed. 

How to Apply for an Encumbrance Certificate?

You can apply for an encumbrance certificate by visiting the Sub-Registrar’s office. However, many states also provide an online service to apply for an EC without visiting the government offices physically. Here are the steps for the online application of encumbrance certificate:

Step 1: Go to the property registration portal or the respective registration department of the state you wish to apply for an encumbrance certificate.

Step 2: Create an account by clicking on the option ‘Register as new user’

Step 3: Fill out the application form with all necessary details and submit it by clicking on the option ‘Register’.

Step 4: Login and click on the ‘Services’ tab and then choose ‘Online EC’.

Step 5: Choose the duration from which you want the EC.

Step 6: Fill out the application form with property details and upload the required documents. 

Step 7: Submit the form and pay the application fees.

Encumbrance Certificate Status Check

Here is the steps for encumbrance certificate application status check:

Step 1: Go to the property registration portal or the respective registration department of your state. 

Step 2: Enter your valid login credentials to log in to your account.

Step 3: Find the ‘Application Status’ or ‘Track Application’ option located on the portal. 

Step 4: Provide the application number and submit it. 

Step 5: The EC application status will be displayed on the screen. 

How to Download an Encumbrance Certificate?

Downloading an Encumbrance Certificate (EC) online is simple. Here are the detailed steps to follow for downloading the certificate online:

Step 1: Go to the property registration portal or the respective registration department of your state. 

Step 2: Enter your valid login credentials to log in to your account

Step 3: Find the ‘View/ Download Encumbrance Certificate’ option on the dashboard and click on it.

Step 4: Provide all valid information that includes the survey number, document number, and other relevant details.

Step 5: Pay any required fees. You can view and download the certified copy of the EC.

Viewing and Verifying an Encumbrance Certificate

Viewing the status of the encumbrance certificate helps you keep track of the certificate. Follow the steps below to view the encumbrance certificate with ease:

Step 1: Go to the property registration portal or the respective registration department of your state. 

Step 2: Enter your login credentials and log in to the portal.

Step 3: Find the ‘View Encumbrance Certificate’ option located on the portal. 

Step 4: Provide all relevant details, including the property's registration number and any other necessary information as requested.

Step 5: Click on the ‘Submit’ button. The system will display the EC status. 

Encumbrance Certificate (EC) Sample

The property encumbrance certificate contains detailed information relating to encumbrances on a property. It helps buyers determine if the property is free from loans and if the seller has a clear title to sell it. It also mentions the number of times the property ownership has changed over time. Here is a sample of the encumbrance certificate:

Benefits of Encumbrance Certificate (EC)

An Encumbrance Certificate (EC) is a valid document for sellers and property buyers which benefits in property transactions. Here are the benefits:

Buyers

An EC serves as a document of assurance to the purchaser that no other financial commitments or encumbrances, i.e. outstanding loans or dues, are pending against a prospective property purchase. An EC assures transparency and protects the purchase transaction. 

Sellers

A transparent EC helps the seller by ruling out all dues and disputes and eases the selling process. A property with no encumbrances or previously completed encumbrances enhances buyer confidence. The EC also serves as proof of seller ownership and verifies the property’s financial and legal status.

An Encumbrance Certificate (EC) makes property transactions smooth by verifying the legal and financial standing of the property. Whether you choose an online or offline procedure to apply and obtain an EC, it is essential while buying a property. Always make it a point to have a valid EC so that your property transactions can be fully secure, reliable, and transparent.

Related Articles:
1. Encumbrance Certificate (EC) Karnataka
2. Encumbrance Certificate (EC) Tamil Nadu
3. Encumbrance Certificate (EC) Kerala
4. Encumbrance Certificate (EC) AP