Encumbrance Certificate- What Is It?

So, you are looking forward to a property deal? And surfing every possible informations on Internet and checking out agencies that can smoothen out the whole process for you!

EC or Encumbrance Certificate! Does that rings a bell? Well, maybe yes. You know by now that it is the most vital document required to look upon while purchasing a property or making a deal.


So what’s exactly EC or Encumbrance Certificate is? Let’s get into some easy definition.

Encumbrance Certificate is the one that documents any monetary or legal liabilities related to the property in question. In other words, you can say EC provides an over the top understanding of the property you are considering to purchase in terms of its monetary obligations and legal liabilities (if any).

So where to look for this certificate or who is the authority to provide EC?

EC is maintained by the Registration Department and to get a copy of the same one must knock the Sub Registrar Office. Generally it takes about 15 days to a month to obtain a copy of EC depending upon the SROs.

Why is EC important?

EC is important simply because it gives a clear idea and understanding of the profitability of the property in question. Also it is kinda history of the property and the phases it has witnessed.  Apart from this obvious reason, if you are considering a loan for the purchase of the property, the EC comes out as real hero. Nationalized banks generally ask for a EC for 15 to 30 years to evaluate the property.

Saying so, let’s catch some quick pointers:
What a buyer should look for in an EC ?

1. Check out that the property you are considering purchase is free of mortgages. That is, all its loans are paid off and monetary obligations cleared.

2. Check and verify the continuity of the title transfers. If any discrepancies noticed, get it scrutinized carefully and minutely to avoid any form legal hazards later.

Why a owner should check and update the EC of its property?

1. An owner should obtain and check the EC of its property regularly to rule out any possibility of fraudulent transactions against his/her property.

2. After every transactions made against the property, the owner must ensure that the details of the transaction has been recorded in the EC.

3. Having a updated and clutter-free EC increases the valuation of the property.

To know more about Encumbrance Certificate, read here:

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