If you are planning to buy a residence belongings, you should have come upon the ‘Encumbrance Certificate (EC)’. While making ready for the large purchase by way of bringing collectively all required files, make certain you don’t miss out on an Encumbrance Certificate of the particular belongings.
What is Encumbrance Certificate?
An encumbrance refers to any charge created on any asset, greater frequently used in the context of actual estate. An Encumbrance Certificate or EC is a certificates of warranty that the belongings in question is free from any legal or financial liability which include a mortgage or an uncleared loan.
It is of capital importance that a homebuyer obtains an EC no longer best to at ease his prison name over the property however also to be eligible to acquire loans from maximum banks and economic institutions for or in opposition to the belongings.
How to attain an EC?
The EC for a assets is provided on the sub-registrar’s workplace in which the belongings has been registered. To verify the transactions which have taken location concerning a assets-
• Application is to be made to the registration office for an EC, together with an attested copy of proof cope with, information about the assets, its identify information, and the price applicable for acquiring the Certificate.
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The officer will inspect the Indexes for info inside the targeted period.
• An Encumbrance Certificate with the details of the transactions in the specified length, or if no transactions have taken region, a Nil Encumbrance Certificate (NEC), is issued.
• The certificate is issued 15-30 days from the date of utility.
• The styles of the packages and certificates are detailed inside the annexures to the guidelines of the Registrations Acts of the respective states. Usually, an application is made in Form No. 22 and the EC are issued in Form No. 15, NEC in Form No. Sixteen of the respective country rules.
What you’ll locate in the EC
In a main case, the High Court of Karnataka has rightly found that “an Encumbrance Certificate regarding an immovable belongings issued by using the Registration Office isn’t simplest of encumbrances but of all acts and encumbrances affecting such assets.”
All transactions regarding the assets which have been recorded with the aid of the Registrar may be seemed into, and vital details might be made to reflect inside the EC.
The Certificate typically relates to a specific duration and transactions relevant to that length on my own might be taken into consideration. Another vital consideration is that the EC will replicate most effective those transactions and files that have been registered with the workplace. Certain documents together with testamentary files and brief-time period lease deeds need now not be registered below the regulation, and are consequently excluded from the purview of the transactions recorded on the sub-registrar’s office.
Completion and Occupancy Certificates
An EC is to be outstanding with a Completion Certificate (CC) or Occupancy Certificate (OC).
A CC is issued with the aid of the nearby authority to a builder or developer upon the final touch of construction of a building in compliance with the building plan and different regulations. Once a CC is received, the neighborhood municipal authorities issue an OC or a Possession Certificate (PC) as a announcement of no objection in permitting the occupancy of the constructing.
Therefore, if you are looking to buy a house property, it is good to test that the builder or developer has been issued a CC and OC.