Encumbrance – a mortgage or other claim on property or assets.

An encumbrance refers to any charge created on any asset, more often used in the context of real estate.

Encumbrance Certificate (EC) is an important legal document that certifies the ownership and status of a property in Bangalore. It is a crucial document that helps buyers to verify that the property they are purchasing is free from any legal encumbrances. 

Encumbrance Certificate is of capital importance that a homebuyer obtains an EC not only to secure his legal title over the property but also to be eligible to obtain loans from most banks and financial institutions for or against the property.

What is an Encumbrance Certificate ?

An Encumbrance Certificate is a legal document that shows the ownership and status of a property. It is issued by the government of Karnataka to certify that the property is free from any monetary or legal liabilities such as mortgage, litigation, or any other charges. The certificate is issued for a specific period, and it varies from state to state.

Every document affecting an immovable property has to be registered, so that any person who wants to deal with such property can find out about the encumbrances, legal obligations, rights and ownership of such property; and such registration acts as constructive notice to a person who subsequently acquires such property or any part thereof, or share or interest therein; When a person wants to ascertain whether any transactions have taken place in regard to an immovable property or the particulars of such transaction.

Importance of Encumbrance Certificate

An EC is a critical document for any property transaction in Bangalore. It serves as proof of ownership and assures the buyer that the property they are investing in is free from any legal issues. An EC is also required when applying for a loan against the property or while selling the property. It is important to obtain the EC for the entire duration of the property ownership as it is required for future transactions.

When buying a house, flat or plot, it is important to verify that the property does not have any monetary or legal dues and EC ensures that there is a complete ownership of the property without any monetary or legal liability. The EC is necessary for those applying for a home loan or obtaining a loan against property or when one wants to sell or buy a property.

“Encumbrance” means the liabilities created on a particular property, whereby it is owner, which has not been discharged as on date. An EC contains all the transactions registered relating to a particular property for a certain period (as required). These details also consist any claims or encumbrance on the property. Government authorities and financial institutions like house usually demand 10-20 years of encumbrances.

However, you can also ask for upto 30 years encumbrance certificate to be checked if you still have doubts, you can take a possession certificate of the ownership of the particular land, which is available in the village office.

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