Property buyers must know that in this country people who wouldn't think twice before duping them of their hard-earned money are not scarce. Therefore, when making a big or heavy investment, such as buying a property, one must be extra careful. Property buyers must always download the Encumbrance Certificate, but what is EC and why is it so important?
An Encumbrance Certificate is a legal document that will protect you from any kind of fraud in the future. The Encumbrance Certificate not only details the information regarding all the previous owners of the property but also sheds light on whether the property has any encumbrances against it. Any individual planning to buy a property must first get the Encumbrance Certificate issued. This will help them avoid future complications. Here is why property buyers must ask for an Encumbrance Certificate.
Importance of an Encumbrance Certificate
1. The most important thing that an Encumbrance Certificate does is help buyers understand the title pattern of the property. If a property has more than one owner, the property buyer must get the signature of all the property owners as only then will the property sale be considered complete. Thus, an Encumbrance Certificate can help a buyer avoid future conflict by ensuring that everyone who has a legal claim in the property they are buying has agreed to the sale.
2. The Encumbrance Certificate also gives the property buyer clear details about the debt and liabilities against the property. For instance, if the property owner had taken a loan against the property but has entirely paid it off, the buyer will be able to see this information clearly on the Encumbrance Certificate. When an individual takes a home loan or a loan against property, the lender puts an Encumbrance on the property against which the loan has been taken. It is only after the borrower has repaid the loan in its entirety does the lender removes the lien from the property and the property becomes Encumbrance free.
3. Lastly, the Encumbrance Certificate helps confirm that the property is not embroiled in any kind of legal conflict.
In conclusion, if you are planning to invest in any kind of property, you must have an Encumbrance Certificate. Here is how you can apply for an Encumbrance Certificate in India:
1. To start with, go to your state's website.
2. Next, you will be asked to create an account by providing some information about you.
3. You will have to authenticate the information provided by you using the code you will get on your phone.
4. Once you log in to your account, the first thing you will be asked to do is change your password. Do so.
5. Next, go to the section titled 'Services' and after this, select the option 'Online EC'.
6. Next, fill out all the details of the property that you are planning to buy.
7. Select the option 'Send OTP to View Document'.
8. Enter the OTP you receive on your phone in the box on the screen.
Once you have placed the request for an EC on your state's website, it will take 15 to 30 days for the state government to act on your request and prepare the EC. Further, while placing the request for an Encumbrance Certificate, you will be asked if you want an attested copy or an unattested one. Depending on the option you choose, you may be asked to pay slightly extra.
In conclusion, the Encumbrance Certificate is an important document and one must not proceed with a property purchase in the absence of this document.
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