The significance of the encumbrance certificate (EC) is that it assures and certifies that there are no dues on a particular property. It ascertains that the ownership of the property is marketable and clear. In Telangana, the Department of Registration issues the encumbrance certificate.
An Encumbrance Certificate or EC is a vital record that presents references to any liabilities in the form of a mortgage or a loan against the property, that is still pending and is yet to be cleared by the property owner. It is quite important to verify this document well ahead of purchasing a property. The encumbrance certificate enables one to collate all the vital details of a property and hence it holds significant merit with respect to property documents. The certificate clarifies that the property is devoid of monetary or legal liabilities thus possessing a clear title. The encumbrance certificate is necessary not only to purchase a property but also to avail of loans against a particular property. Know the complete details of how to get EC Telangana (Encumbrance Certificate Telangana)
Purpose of Encumbrance Certificate Telangana:
The primary purpose of an Encumbrance Certificate is to provide clarity and transparency regarding the ownership status of a property. It serves several important functions:
Verification of Ownership: It verifies the ownership of the property by listing the name of the property owner. This is crucial in property transactions to ensure that the seller has the legal right to sell the property.
Confirmation of Liens: The EC mentions whether the property has any encumbrances or liens. It indicates whether there are any outstanding loans, mortgages, or legal claims on the property. This information is vital for prospective buyers and lenders.
Fraud Prevention: It helps prevent fraud in property transactions by providing a public record of the property’s history. Buyers can verify the property’s title and financial status before making a purchase.
Legal Requirement: In many property-related transactions, such as buying/selling, applying for a mortgage loan, or transferring ownership through a donation, an Encumbrance Certificate is a legal requirement. It ensures that the property is free from encumbrances.
Documentation: The certificate contains essential details of property transactions registered with the sub-registrar’s office. These transactions include sale deeds, partition deeds, release deeds, gift deeds, settlement deeds, mortgage deeds, mortgage discharge receipts, and court attachment orders.
Key Points to Remember of Encumbrance Certificate Telangana:
The EC typically pertains to a specific period, and it reflects transactions relevant to that period.
- It includes details of transactions recorded at the sub registrar’s office, such as sale deeds, mortgages, and other property-related documents.
- The document provides a comprehensive description of the property, as recorded in the Sale Deed. Mortgage details are also included if the property was purchased with a loan.
- The EC lists transactions in serial order for the specific period, including dates, transaction details, volume number, book number, document numbers, and names of the parties involved.
- The certificate helps establish a clear chain of ownership and financial history of the property.
Where Do I Get the Encumbrance Certificate Telangana? – EC Telangana
To obtain an Encumbrance Certificate (EC) in Telangana, you will need to follow a specific process. Here’s how you can get an EC for a property in Telangana:
- Visit the Sub-Registrar’s Office:
To obtain an EC, you must visit the sub-registrar’s office that has jurisdiction over the location where your property is registered. Each sub-registrar’s office handles property transactions for a specific area.
- Application Form:
Request an application form for the Encumbrance Certificate. You may need to fill out this form with details about the property, such as its address, survey number, and other relevant information.
- Pay Fees:
Pay the required fees for the EC. The fee amount may vary depending on the number of years for which you want the certificate and other factors. You can inquire about the fee structure at the sub-registrar’s office.
- Submission of Application:
Submit the completed application form along with the necessary documents and the fee payment receipt to the sub-registrar’s office. Ensure that all the information provided is accurate.
- Processing Time:
The processing time for the EC may vary, but it typically takes about six business days to obtain the certificate.
- Verification and Issuance:
The sub-registrar’s office will verify the information and conduct a search of the property’s transaction history. Once the verification process is complete, they will issue the Encumbrance Certificate.
- Collect the Certificate:
Return to the sub-registrar’s office on the specified date to collect your Encumbrance Certificate. It will certify that the property is free from any liens, bonds, mortgages, or seizures during the specified period.
Difference Between Encumbrance Certificate and Occupancy Certificate:
- An Encumbrance Certificate (EC) verifies the financial status and transaction history of a property, ensuring it is free from encumbrances.
- An Occupancy Certificate certifies that a property is safe for occupancy and complies with local building codes and regulations.
Encumbrance Certificate Telangana: Benefits of Encumbrance Certificate
Required for Property Transactions: An EC is essential when buying or selling a property, applying for a loan, or any legal transaction involving a property.
Transaction history: It is vital as it contains a record of all property transactions registered during a specific period.
Ensures property is debt-free: The EC confirms if there are any claims or encumbrances on the property.
Prerequisite for Obtaining Loan: Many banks and financial institutions require an EC covering 10-15 years for loan approvals.
Significance of Encumbrance Certificate Telangana (EC Telangana):
The certificate is issued by the Sub-Registrar of the respective jurisdiction where the property is situated. It elucidates various details such as the name of the owner, the transfer of ownership, mortgages taken out against the property, etc. An encumbrance certificate comes in handy in the following circumstances:
i) While buying or selling a property:
As the certificate conveys details about the liabilities of the property, it is the most important document that has to be considered while buying or selling a property. The parties to the sale have to present the certificate at the required time, to facilitate the transfer of Online Property Registration. The seller must provide the buyer with the EC by making an application to the government and thereafter handing it to the buyer.
ii) Opting for loans to buy a property:
Most banks and financial institutions have laid down their set of rules so as to ensure the successful approval of the loan. Furnishing the encumbrance certificate of the property is one such prerequisite for the banks to approve a home loan.
iii) Withdrawal of Employee’s Provident Fund (EPF) for purchasing a property:
When individuals wish to withdraw the EPF to purchase a property, the EC has to be furnished. The employer usually urges the concerned person to submit the EC when they request an EPF withdrawal to procure a property.
iv) Mutation of Property:
In the sale of a property, the property is transferred to the buyer’s name by way of property mutation. This depicts the transfer of property from one party to another. The EC plays a crucial role here as well.
Procedure for Application of EC Telangana:
The application for an Encumbrance Certificate can be made by pursuing the following steps:
Step 1:
The applicant wanting the Encumbrance Certificate must log in to the official website
Step 2: On clicking the Submit button, the applicant is navigated to a new page
Step 3: The Applicant can do a search by using the Document Number of the property or by the location of the Property. Thereafter the applicant has to enter the required details requested and click ‘Submit’. The Applicant has to uploaded the required documents and must pay the stipulated charges as stated
Step 4: The Applicant is provided with an acknowledgment number for further reference
Step 5: After verifying the documents furnished by the applicant, and on receipt of the fee, the encumbrance certificate is issued to the applicant which can be downloaded easily. The certificate can also be collected at Telangana centers which will be notified to the applicant through SMS.
Alternatively, the Application can also be downloaded from the website and can be submitted in person in the Sub-Registrar office. It is far easier to obtain the encumbrance certificate online than to apply for the same in person through the sub-registrar office, as the latter is quite time-consuming. The status of the application can also be tracked on the website by entering the required search parameters. The certificate can be obtained within a time span of 5-6 working days.
The fee to be Paid for the Encumbrance Certificate:
The applicants who intend to acquire the encumbrance certificate for a particular property are required to deposit a fee amount for the same. The fee to be paid is contingent on the age of the applicant. If the age of the applicant is less than 30 years, the fee would be ₹200 and if the applicant is older than 30 years a fee of ₹500 has to be deposited.
Details Enclosed in the Encumbrance Certificate (EC Telangana):
An Encumbrance Certificate essentially reveals the following details:
- Details and transactions recorded by the Registrar pertaining to the property
- Information enclosed in the sale deed
- All transactions pertaining to the said property that took place in a specific time period
- If the property was a gift settlement, details pertaining to the same will be present.
It is pertinent to note that testamentary documents and short-term lease deeds are not required to be registered by law. The online encumbrance certificate in the state of Telangana is available for all transactions done on a property after 01-01-1983. For any transaction that took place prior to that, the concerned party must approach the Sub Registrar’s Office. An Encumbrance certificate is therefore an indispensable document when one aspires to purchase a particular property in any state within India, let alone Telangana.
Given the gravity of the real estate frauds in recent times, it is very crucial that the EC Telangana and other related documents are carefully scrutinised before pitching in to buy a property. Fortunately or unfortunately, real estate due diligence is not everyone’s cup of tea and is something only legal experts are good at.
Our team at Vakilsearch is well-versed in property issues and can deal with the same conscientiously. Just give us a call and we are right here to guide you and help you out.
Can I check the status of my Encumbrance Certificate application online?
Yes, residents of Telangana can check the status of an Encumbrance Certificate at http://registration.telangana.gov.in/EncumbranceSearch.html.
Is the Encumbrance Certificate valid for a specific period?
An Encumbrance certificate is provided for a certain time period, and the transactions made on the property during the said period are stated and taken into account.
What is the significance of an EC Telangana when buying or selling property in Telangana?
An EC Telangana is very important in the state of Telangana during the process of purchasing a property. Every individual who is purchasing a home should have an Encumbrance Certificate as banks will ask you to produce the same when you apply for a loan against the property.
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