Updated on: Oct 12th, 2021
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5 min read
If you planning to purchase a house property, you must have came across the need for an “Encumbrance Certificate”. Encumbrance of the property refers to any kind of legal or monetary charges created on it.
Let us know in details about this certificate :
It is one of the mandatory documents used in-house property transactions. This is the evidence of the fact that the property referred has a free title or ownership. While purchasing a house, it is very important to verify whether the property is free from legal or monetary liability. This certificate ensures that a person has a complete ownership of the property.
This certificate is important to those who want to obtain loans against their house properties or buy or sell a house property. It not only confirms the legal title of the owner over the property, but it also makes one eligible to obtain loans or advances from banks or any financial institutions against the property.
The certificate can be obtained from the sub-registrar’s office where the property in reference is registered. To obtain an encumbrance certificate, one has to follow these procedures :
Encumbrance certificate – Sample format
Encumbrance certificate shows property's legal status. It's crucial for property transactions, obtaining loans. Obtain from sub-registrar's office by submitting Form 22 with necessary documents and fees. Usually takes 15-30 days. Fees vary by state rules. Get an encumbrance and possession certificate as proof of ownership.