In the present article, the writer will cover everything a person should know about this subject matter. With the said object, this article shall elaborate all the relevant aspects of the concerned document, i.e., encumbrance certificate, which includes its significance, procedure of issuing encumbrance certificate, and types. Lastly, the writer will end this article with its closing statement highlighting some spry points related to the issuance of encumbrance certificates.
Encumbrance Certificate: Relevance and Requirement
Reflecting from the term; encumbrance, which means burden or obstruction, this certificate is issued by a state to give clean-shit to a property subject to sale/purchase in any manner. Relevance of this certificate can signify from the above statement that buying any disputed property may lead to huge loss or chaos for the buyer/purchaser, i.e., the new owner. Therefore, before finalizing the property deal, the buyer must ensure to check the encumbrance certificate as it’s valid proof that the concerned property is free from any monetary charges/liabilities. Hence, the Nil-encumbrance certificate is one of the main required documents that the purchaser should check while registering the purchased property. This document is not just required to quench buyers’ anxiety, but it is a necessary document in case of Home Loans, Provident Fund (PF) Withdrawal or Property Mutation, etc.
How Encumbrance Certificate can be issued
Buying or selling a property is a state concern; therefore, the procedure for applying and getting an encumbrance certificate may vary from state to state. Most states have launched an online portal whereby e-encumbrance certificates can be issued. When it comes to offline mode, the applicant must visit the sub-registrar office as per the jurisdiction of the property location. While filing the form (offline or online), the applicant should be ready with property details along with the Id proofs of buyer & seller. Along with the supporting documents, the applicant has to submit the purpose of the certificate in writing on stamp paper (maybe Rs. 2/-) and a nominal prescribed fee of the application. After getting acknowledgment, chances of getting an encumbrance certificate are between 2/3days (online application) and 15-30 days (offline model).
Types of Encumbrance Certificate
Considering the relevance of the encumbrance certificate, getting a Nil-encumbrance certificate is the best for any property-related transactions. However, it is not in the buyer's hands or even the seller to get a Nil-encumbrance certificate. Thus, it's the state’s job to scrutinize the history of the concerned property and signify that it is free from any legal charges or implications. If examination conducted by state officials concluded that impugned property doesn’t have any encumbrances during the specified period mentioned in the application. Then, the sub-registrar office shall issue a certificate on Form 16, which signifies Nil-encumbrance. However, if any encumbrance is reflected connected with the impugned property, an encumbrance certificate shall be issued on Form 15.
Conclusion
Understanding its importance, an encumbrance certificate should be on top of the checklist when it comes to any deal that questions a property's credibility. Thus, a Nil-encumbrance certificate is vital in real estate business or property mortgage transactions. Before summing up, the writer would like to highlight a pertinent point that encumbrance certificates come under state government domain, usually issued in a regional language only. However, the applicant can apply for its translation to English by giving an additional fee.