Government of Andhra Pradesh. has issued the Layout Regularisation Scheme (LRS) for regularisation of unauthorised layouts in the state. Plot owners with registered title deeds in unapproved layouts can apply. They must submit the latest Encumbrance Certificate (EC), showing 13 years of transactions.

A certificate of encumbrance proves that the property under discussion is free of monetary and legal obligations. With a free title, you can take possession without any hassle. You can get this form from the registration authority. The property you’re about to put money into has a sellable title and is free of any legal duties.

Encumbrance is essentially a reference to any claims which have not been settled in the case of a mortgage or a loan against the land. The certificate of encumbrance shall be issued from the office of the sub-registrar where the specific property is registered.

It lists all of the specifics of every activity on the land. If you plan on buying the property, taking out a home loan for it or taking a loan against it, you need to have that certificate. Governing authority will rely on a 13-30 year encumbrance certificate in all situations.

Encumbrance Certificate – Exclusions

However, some documents don’t have to be registered and the essence of those documents would not be available in the encumbrance certificate. These exempt records don’t come under the framework of the 1908 Registration Act.

These excluded documents are the equitable loan documents, where the bank keeps all the original documents and aren’t registered with the registrar’s office.

Some testamentary agreements and contracts are within a year. Any other records that may be omitted are linked to oral lease, tax obligations as well as previous non-registered arrangements such as papers based on a personal contract or an unregistered deed.

In fact, if you want to mortgage the property for a loan, you need a ‘no encumbrance certificate.’ If you want to obtain your certificate, you will have to apply for it with a non-judicial stamp of ₹ .2 affixed to Form 22.

Encumbrance Certificate – Andhra Pradesh

In the state of Andhra Pradesh, it is an important legal document. It ensures the property is free of all debts, both monetary and legal.  The certificate proves that the property for which the encumbrance certificate was issued can be sold and its ownership can be transferred without a lawsuit. It also contains details of all legal and financial transactions against the property. 

Importance of Encumbrance Certificate

The importance of Encumbrance certificate for the issues related to the property in Andhra Pradesh are mentioned as follows:

• For applying for the loan from banks and other financial institutions in the state of Andhra Pradesh the Encumbrance certificate should also be furnished that certifies the land or the property in question has not been already mortgaged.
• To transfer the ownership of the title of the property to the buyer the seller needs to provide the Encumbrance certificate as evidence of ownership of the title.
• For updating the land tax records, in the case of property tax due by 3 years, the encumbrance certificate is to be submitted to the village officer.
• Also, for the withdrawal of the PF amount to purchase a property or construction of the house the Encumbrance certificate is required.

Details mentioned in the Encumbrance Certificate

The details related to the property mentioned in the encumbrance certificate.

• The name of the property owner.
• Details of the property are mentioned in the encumbrance certificate.
• All the transactions made related to the property are mentioned in the encumbrance certificate in the order of their occurrence.
• Details about the mortgaged property if the property was purchased on loan.
• Description of the property, its details, following the sale deed is mentioned in the encumbrance certificate.
• If the property was purchased in partnership and one of the partners decides to release his share of the property, the Encumbrance Certificate will contain all the details related to it.

Cost to Obtain the Encumbrance Certificate

You may receive the certificate of Andhra Pradesh Encumbrance by charging a nominal amount. The nominal amount should be based on the length of the certificate of encumbrance. The certificate is granted for three years.

• Duration up to 30 years -Rs 200  
• For more than 30 years -Rs 500

After the fees are paid the encumbrance certificate is obtained within a day.

Andhra Pradesh Encumbrance Search

Before completing the ownership transfer and purchasing the property, we help buyers verify the actual details of the Online Property Registration. Online registration has some limitations in Andhra Pradesh. Encumbrance certificates for properties and their related transactions after Jan 1, 1983 can only be searched by the Andhra Pradesh Registration Department. The interested parties must approach SELF REGULATORY ORGANISATIONS (SRO) to obtain an EC before the mentioned date.

How to search Encumbrance Certificate?

1. With Document Number: From the drop-down menu, the user needs to select the document number, registration year and has to fill in the registered SRO. Once everything is selected the user needs to enter the captcha and click on the SUBMIT button.
2. With Memo Number: Then, from the drop-down menu, select the registration year, registered SRO and select the memo number. Lastly, the user needs to enter the captcha and click on the SUBMIT button.

In case if the interested user doesn’t have the memo or the document number, they can select the ‘NONE’ option. After the selection is made the user will be redirected to a different page. This is where the search can be made with the following pieces of information provided 

• District name 
• Property name 
• Property (land, building, site) details 
• Property’s boundary details 

Conclusion

Once the user has entered the above-mentioned information, he or she must enter the captcha and click SUBMIT. Using MeeSeva to apply for the Andhra Pradesh encumbrance certificate

1. The User must visit the MeeSeva franchise. One must then ask the agent to apply for the Encumbrance certificate on their behalf in the required format.
2. The required fees should be paid to MeeSeva agent for further processing the Encumbrance certificate application
3. The application is done online by visiting the Andhra Pradesh Registration department website. The user will get updates regarding the application of the certificate through SMS alerts.
4. The Mode of delivery of the certificate is to be provided as per the convenience of the applicant.
5. Finally, after the request is approved by the regulatory office, the encumbrance certificate is delivered. It is delivered via speed post to the mentioned address. In fact, the user can manually collect the same from the MeeSeva franchise too.

The encumbrance certificate is inevitable evidence when the ownership of the property needs to be proved. The Andhra Pradesh Registration and Stamp department issues this certificate mentioning the necessary legal and financial details made regarding the concerned property.

Conclusion

In conclusion, the encumbrance certificate is a vital document for verifying the legal and financial status of a property in India, particularly in Andhra Pradesh. It ensures that the property is free from any monetary or legal obligations, making it a critical piece of evidence when transferring ownership, applying for loans, updating tax records, or withdrawing PF amounts for property purchase or construction. The certificate, issued by the sub-registrar’s office, details all transactions related to the property, including ownership, mortgages, and sales.

For those navigating the complexities of property transactions, it is advisable to consult lawyer online to ensure all legal requirements are met and to receive expert guidance on obtaining and interpreting the encumbrance certificate. This will help you make informed decisions and secure your property investments confidently.