Encumbrance Certificate - Meaning, Types and Importance

An encumbrance certificate shows that a particular property is free of legal and financial conflict, can help settle any claims. The certificate shows property ownership and contains a history of recorded transactions (dating back up to 30 years), changes in inheritance, and, if applicable, fraud and litigation information.

a) Ownership

Encumbrance Certificate is a necessary document that allows people to show ownership title. If a person intends to buy a property or land in any region, they should ensure that any other person has not claimed the property or land. Hence, this certificate allows you to determine the presence of any owner(s) who may subsequently claim the legal title of the property.

b) Tax Record

Suppose a property or land tax has remained unpaid for over three years. In that case, an EC or Encumbrance Certificate is filed to the Panchayat or Village administrator to update land or property tax records.

c) Loan Applications

Encumbrance Certificate is required when an individual seeks a loan against property. People who wish to obtain a loan using their property as security must provide this document to banks and financial organisations. The Encumbrance Certificate confirms that a property is free of legal issues, allowing lenders to sanction the loan.

d) Property Mutation

Individuals must document the property ownership or transfer of title in the revenue records of the local municipal corporation through mutation after purchasing a property. This process can be done with the help of an Encumbrance Certificate.

The encumbrance certificate will be issued by the sub-registrar office (SRO) as Form 15 or Form 16.

Form 15: If a property has any transaction relating to inheritance, sale, purchase, lease, loan, gifting, relinquishment, or partition, the SRO issues an encumbrance on Form 15.

Form 16: If a property has not registered any encumbrances or transactions when the applicant has applied for a certificate, the SRO grants an encumbrance on Form 16. A nil-encumbrance certificate is another name for Form 16.

The process to get an Encumbrance Certificate online is mentioned below: 

Step 1: Go to the official website of your State Land Registration. Log in with your existing credentials or create an account by clicking 'Register as New User.'

Step 2: After login in, select 'Online EC' from the 'Services' column and enter the date of the property registration. Enter any additional property-related information.

Step 3: Choose "Send OTP to See Document." Enter the OTP obtained on your registered phone number and click 'See Document.'

Step 4: Click 'Check to Apply for Digitally Signed EC' to view or download the Encumbrance Certificate.

Step 5: Choose 'View Document.' A PDF will open, and the applicant can download it by clicking the 'Proceed' button at the bottom of the file. Pay the application fees to complete the process.

• Application Form.
• Address verification document (attested copy).
• A photocopy of any previously executed property deeds, such as sale deeds, gift deeds, partition deeds, and release deeds.
• Property Details and Title Deed.
• Aadhar card.
• Registered deed number, date, book number, volume/CD number, and the applicant’s signature.

The following details are recorded on an Encumbrance Certificate:

• The title holder of the property.
• All property-related transactions and papers (as documented by the registry).
• Property description as mentioned in the Sales Deed.
• Transaction information and date, book number, volume number, document number, and the names of the people participating in the transition are all included.
• Information on property or home loans (if an individual purchases the property or land on loan).

To track the status of an EC Encumbrance Certificate, follow the steps outlined below.

Step 1: Go to the official website of your respective state land registration portal.

Step 2: Sign in with your credentials. Select 'Online EC Application' from the drop-down menu under 'Service Type'.

Step 3: Enter the transaction details and the CAPTCHA code

Step 4: Select ‘Check EC Status’ on the next page.

Step 5: The update status will be displayed on the screen. It generally takes 6-7 days to get your encumbrance certificate online.