Check encumbrance certificate before buying a property

plot of land
Representative image: Shutterstock

Purchasing land or property is something that must be done with extreme care and caution. The person who sells or buys the piece of land may be unaware of the legal complexities related to its ownership, the title deed and so on. That's why the Encumbrance certificate is vital when it comes to the sale or purchase of a plot.

The encumbrance certificate contains all the information regarding legally registered encumbrances in connection with the plot. Besides, the sale and purchase details too would be included in this certificate. Information about the persons and institutions related to the transactions would be recorded in it. So, the title deed should be registered only after inspecting the documents and deeds that are mentioned in the encumbrance certificate.

Most people would be dejected when loans are declined by banks when they try to mortgage their property. If there are any liabilities linked to the property, then a smooth transaction wouldn’t be possible. The only way to save oneself from this is to check the encumbrance certificate for any liabilities before purchasing the property.

Due to interference from middlemen, most people would only refer to the encumbrance certificate of just 10 – 15 years. However, the liabilities for up to thirty years should be inspected before purchasing the property. The current owner is liable to repay debts that are even fifteen or twenty years old.

If the property has been mortgaged against a loan, then the buyer should be extra careful. The middlemen often present a letter issued by the bank in which it is merely written ‘Loan repaid; no more liabilities’ to convince the potential buyers. However, it is not enough. The certificate that makes you non-liable should be registered in the sub-registrar office.

While applying for the encumbrance certificate, the survey number and the owner’s name should be correctly noted. Even a small mistake could make things complicated. The application has to be submitted at the sub-registrar office where the property is located. Now, the application could be submitted via online or at the Akshaya centres. The copies of the identity cards and title deed should be uploaded along with the application. 

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