Encumbrance Certificate
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A home buying procedure comprises of various elements right from the search for a budget-friendly property and preferred location. These things are in control of a home buyer but there are certain things that an aspiring home buyer can’t control and the Encumbrance Certificate is one such thing.

So, you must know what the Encumbrance Certificate is all about and the procedure to apply/obtain this certificate.

Concept of Encumbrance Certificate

This is a certified document from the registered office that declared the property debt and liability-free. The certificate is issued for any particular time period according to the application request. Also, the Encumbrance Certificate has the name of owner also known as the property owner and his/her residing address.

Dissimilarity between Encumbrance Certificate and Occupancy Certificate

A home buying/selling incorporates various papers to ensure that the property titles are clear and the property is not located on a disputed land. Thus, the first property owner receives an Occupancy Certificate from the builder or the seller in order to avail all civic amenities from the respective authority. The civic authority provides sewer, water pipeline and electricity connection only after inspecting the OC alias the Occupancy Certificate. This certificate also makes a person legal owner of the residential unit and thus the authority can’t ask to vacate the place/plot at any given time.

Difference Encumbrance Certificate and Completion Certificate

The Completion Certificate is also known as CC and is offered by the developer/builder to the first owner of the residential unit. According to this Certificate, the particular residential unit is constructed under the laws and thus housing plan is passed by the authority and does not comprise of illegal encroachment.

Steps to Apply for Encumbrance Certificate

  1. Visit the property registration office and fill Form-22 along with the property details and the details of the property owner. Make sure to attach the attested copy of buyer’s address proof.
  2. The Authority issues EC – Encumbrance Certificate within 15-30 days after inspecting the property for which the application is moved.
  3. The authority issues Form-15 in case they find any liability such as Loan against property, homeloan on property or Mortgage on the same in accordance with the property.
  4. The Authority issues Form-16 only in case they find zero records of liability against the property.
  5. The applicant is likely to pay the application fee to obtain the Encumbrance Certificate for a particular period.

Advantage of Encumbrance Certificate

The sole benefit of obtaining an EC is to get eligible for homeloan from any bank. Many banks don’t consider disbursal of homeloan for the applicants without assessing the Encumbrance Certificate.

So, you must consider this document while buying a home.