Essential Guide to Encumbrance Certificate
One of the crucial documents home buyers must consider is an Essential Guide to Encumbrance Certificate. It helps ensure their purchase process is complete. Commonly regarded as EC, it is a significant document to confirm legal ownership of a property.
It is defined as a legal document that confirms that a property is free from monetary or legal obligations. This certificate is important when purchasing or selling a property, taking a loan from a bank/financial institution, or applying for a loan against property. The key aspects of the Encumbrance Certificate discussed below are important to consider if you want to buy a residential property in Gurgaon.
Why get an Encumbrance Certificate?
- Before buying an luxury builder floors in Gurgaon or other types of residential property, should ascertain that the property owns a clear title. Obtaining an Encumbrance Certificate guarantees that the property you want to buy is free from any legal or financial liability.
- The certificate indicates if any existing owners can legally claim the property.
- Apart from purchasing a property, an EC is also required for those wanting to apply for a home loan or avail of a home loan against the property.
- Usually, banks will ask for your property EC on the property for the past 10 to 15 years.
- If you plan to buy a property, make sure to get this certificate beforehand so that you obtain your legal title on it. The certificate also makes you eligible for a home loan.
- An EC is required if you want to sell your property.
What questions does the Encumbrance certificate answer?
A homebuyer may have several queries before buying a residential property. An encumbrance certificate answers the following queries of a homebuyer:
- How to ascertain whether the property to buy is not pledged by a bank or the seller?
- How many owners already owned the property you are buying since its construction?
- Is the individual selling you the property really its legal owner?
- How to find out whether the property to buy is free from liabilities?
- What if somebody else has purchased this property, without the awareness of the owner?
- What to do if the previous owner has taken a debt for the property?
When do you require an encumbrance certificate?
Under the following circumstances you will need an encumbrance certificate:
- When selling property
- When purchasing property
- When applying for a home loan
- When withdrawing PF to purchase property
Documents required for getting the encumbrance certificate:
An applicant needs to provide the following documents while applying for an EC:
- His/her address proof (PAN card, Aadhar card, voter ID, water bill, electricity bill, etc.)
- His/her signature
- Details of the property for which he/she is applying for an EC
- A copy of the deed (partition deed, sale deed, or gift deed) (applicable if a deed is already created for the property)
- Property registration document, possession deed, or title
- Property details like plot number, survey number, location, and boundaries.
Essential Guide to Encumbrance Certificate
Process to apply for encumbrance certificate:
If you are planning to buy a residential property from one of the best Luxury Projects in Gurgaon, you need to apply for EC. You can follow the below steps:
Step-1: In Gurugram, EC is not issued online. So, you need to visit the sub-registrar’s office where the property to buy is registered.
Step-2: Write an application on plain paper. It should mention the information you seek.
Step-3: Make sure to submit the application with duly filled Form 22.
Step-4: To get the EC, you would have to pay a nominal fee with your application. Note that the fee would differ, based on the period for which the EC is required.
How much time is required to obtain an Encumbrance Certificate?
In Gurugram, the process to get EC is via offline mode. So, you might get EC via offline mode of application in approx. 6 to 30 working days.
Conclusion:
Whether you want to buy apartment in Gurgaon or a fully furnished flat in Gurgaon or other residential properties, getting an EC is important. Ensuring the residential property you want to buy is free from monetary/legal debts is crucial. This is where obtaining EC proves to be very useful. It easily helps you confirm the legal ownership of your property.
