An ‘encumbrance’ refers to any liability that is created on a property. An Encumbrance Certificate (EC) contains all the transactions relating to a particular property for a certain period (as required). These details also consist any claims or encumbrance on the property.
Thus, when buying a property, it is important to verify that the property is free from all monetary or legal dues.
The importance
Gautam R, an investment banker, was looking to buy an independent house in Porur. After searching for months together, he finally zeroed in on a property. While doing his due diligence, he was not convinced about the documents. Gautam approached his lawyer. After verifying the documents, he learnt that the house was already mortgaged. Had he bought that house, he would have had to bear the responsibility of repaying the outstanding loans.
(Read More: The Encumbrance Certificate: Everything You Need to Know)
The EC is also important when you are applying for a home loan or obtaining a loan against property or when you want to sell or buy a property.
Government authorities and financial institutions like banks usually demand 10-15 years of encumbrance. However, you can also ask for up to 30 years of encumbrance to be checked.
How to get an EC online?
An EC can be obtained from the local registration authority’s office. The certificate will also provide details of any transaction on the property. In Tamil Nadu, you can get it online for free.
- Step I: Log on to https://tnreginet.gov.in/portal/
- Step II: Enter all the required fields. After entering all your details, you will get a reference number
- Step III: Enter the reference number in the confirmation link provided.
- And you are done! You will be able to view the EC within a couple of hours.
Further reading: 13 Home Buying Documents That You Cannot Afford to Miss!
The Encumbrance certificate (EC) is one of the most essential legal documents for properties. It is issued by the state registration department.
The most critical information mentioned in the EC is the name of the current owner of the property. While negotiating with the apparent property seller, it is very useful to check whether the seller is registered as the current owner of the property according to the government issued EC. Imagine paying the advance to a fraudster who has forged documents and given them to you!
As a prospective owner of a property, it is essential that you are aware of any impending dues on the property. Imagine buying a property without knowing that it had been given as collateral to a bank for a loan by the earlier owner. What a nightmare this could be!
Maatrum.com gets all the EC’s for your property over the last 30 years directly from the official website of the tamil nadu government (Tnreginet) and saves you any hassle. The advanced technology platform sifts through and filters only the EC’s relevant to your particular property, and excludes those EC’s of other properties with similar survey numbers. The really easy to use mobile friendly website with images, tips and hints helps even users without any real estate legal understanding to find their EC’s.
i am told that banks do not accept EC got online for sanctioning loans – they want an EC applied for in person – is that correct
I am not able to generate EC online on my pc